$25B Mortgage Deal For Banks Getting Closer

[Parsad]

The deal with various banks goes to the states now for approval.  Cheers!

 

http://blogs.barrons.com/stockstowatchtoday/2012/01/23/big-banks-closing-in-on-25-billion-mortgage-settlement/?mod=yahoobarrons

[Parsad]

California back at the table and it looks like we could see a deal soon.  Cheers!

 

http://www.cnbc.com/id/46275718

[bargainman]

This is one of the most interesting parts: "The settlement, if all states participate, will also include $3 billion to lower the rates of mortgage holders who are current."

 

Everything so far has been to try and help the people who are foreclosed on or close to foreclosure.  (in many cases because they shouldn't have bought that expensive a house in the first place!).  I've been reading a little here and there about this deal potentially allowing people who are current and underwater to refinance.  That would allow a whole new neglected demographic to refi (arguable a more responsible demographic).  But it also sounds like that deal would be DOA in congress.  (Not sure if that is the same as this deal Parsad linked to)

 

http://www.washingtonpost.com/business/economy/obama-to-announce-new-housing-refinance-plan/2012/02/01/gIQAw8YghQ_story.html

 

"almost anyone who has a credit score above 580 and has been paying his or her monthly mortgage bill on time for the past six months be able to refinance.... Christopher Mayer, an economics professor at Columbia who has gained attention for his mortgage proposals, said he’s “a big fan of what the president has proposed for refinancing government-guaranteed mortgages. . . . The program really says for the first time everybody is eligible.”"