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Are you allowed to use military BAH (basic allowance for housing) as line of credit to buy a house?

Hi,

I recently applied for a VA Loan through a Wells Fargo affiliate in Colorado. A the the beginning of 2010 I started school to get a degree. I went from working full-time to working part-time and going to school full-time, as I would not need the extra work hours because I have a steady BAH check coming in for $1031 a month and I could devote more time to study. I began looking for house in Nov. of 2009 in-order to take advantage of the first time home buyers credit. In late Feb. I found a condo that met my needs and I was pre-approved for a loan. I then wrote a contract to buy the condo, payed the earnest money ($1000) and for the home inspection ($275), packed all of my belongings and now three days before closing the underwriter is telling me they will not accept BAH as a line of credit! My mortgage consultant told that I had stayed working full time I would have approved no problem, but since I went to school and receive BAH which is effectively more gross income than working full-time I can’t. I got penalized because I choose to go school. If this turns out to be the end result. I will be out the ($1275) for the earnest money and home inspection and more than likely the $8000 tax credit because it ends at the end of April.
I can’t image why they would not accept BAH as gross income. I fought 4 years for my country, I earned that money and they are telling me that it is worthless. I am doing all the right things, I served my country, I am bettering myself by going to school, and I am trying to stimulate the economy by buying a house and they are telling me I can’t. Is this how we treat our veterans?

I would like to know if they can do this? or number that I could contact someone who could help in this matter.
I am a Veteran.
I am using the post 9/11 GiBIll for school that went into affect Aug 2009.
The GiBill pays for your entire in-state tuition and gives you E-5 BAH while you are in school, which for where I live is $1031 a month.
Pre-approval was based on my part-time work status and monthly BAH income.
I do understand that the benefit is non-permenate, I will only receive for 36 months, but it is a more reliable income than a job (there is not risk of being fired) and I will back in the workforce after graduation will a degree working full-time hopefully at least earning what I do now. The only way I cannot get BAH is by withdrawing from the class. If I fail every one of my classes I still receive the BAH. All I have to do is show up.

tax credit, how do you receive and use it?

Husband is in the military. We have a energy tax credit coming our way because we installed a solar water heater.
He is filed as single no dependents for taxes from his work so that IRS takes out more than what they need every month.
Now since he is in the military, we get a lot of our taxes back.

So how would the tax credit work if we don’t actually get the credit with a check?
We can’t use it for taxes because we get the money back anyway? We don’t pay state taxes at our residence, so we can’t use it for that.

We do have the First-Time Homebuyers credit that we start paying back this coming up tax year (TY2010).
Can we apply it to the homebuyers ‘credit‘ (which is actually a loan; for 2008 homebuyers )?

Then we heard that we can get it as a grant?
What does that mean and how does it work?
(I googled grant, but it doesn’t make sense to me…)

We are lost to how we can use the energy tax credit cause you don’t get it in the form of a check.

…would call IRS, but they’re closed right now.

Thank You in advanced.

how to get a loan in the military?

i have no credit do i still need a co signer its for a car im not gettin a brand new car if that matters im goin to try to get a 2 or 3 year old car and when i do get or if i get this loan can i have it set up for them to just take the payments out of my checks i have no credit at all never had anything to do with credit

Am I out of luck? Or are there options?

I know these sort of things get asked on here all the time, I just have yet to find anything that helps my situation.

I am twenty years old, and about to start my freshman year of college. I have been accepted to University of Wisconsin – La Crosse, and have enrolled, made my deposits, and so on.

Except now comes the part of arranging payment. This is the problem. I already went with the FAFSA, and got approved for the standard direct loan of $5500, annually. This still leaves me at least $8000 shy, if you include room and board, and the school certifies up to another $3000 on top of this, since the current price listings are only an estimate.

I have insufficient credit history to secure a private loan on my own, and didn’t have good enough high school grades to rack up scholarships, nor do I have any exceptional traits or demographic features that qualify me for any scholarships based on those things. My health is too poor, for various reasons, to get into any military program.

My parents refuse to help pay for anything, as they are in financial troubles on their own. Despite making a fair amount of money per year, they have always had money issues, and purchased a house a few years ago that is now worth much less than what they paid for it, in addition to bills, car payments, and supporting me and my brother. My father has had two heart episodes in the past year, one of them a heart attack, so they’re buried in bills from that as well.

Their credit score just got “back up to” 380, so they’re highly doubtful their cosigning a loan application will help, and they’re hesitant to even let me apply with their name attached, as loan application credit checks alone bring your score back down. They’re also doubtful of their chances of getting a Parent PLUS loan, and would rather not go this route, since that would be in their name.

Simply put, this is the situation I find myself in now. I have no idea if I can make this work or not. Any advice or recommendations would be greatly appreciated.

How do I establish credit when I have none?

I was raised with the idea that credit cards are bad and lead to even more debt. So, I don’t own any credit cards. I merely have a checking/savings account. I was formerly in the military so I’ve never been in a stable residence. My husband wanted to get a new car but his credit score was in the 600′s and he had some loans out so they said he would need a co-signor. They told me that I am a ghost, have no credit, and basically am in purgatory so me co-signing with him wouldn’t be advisable.

So, how do I establish credit when I have none? (I have tried applying for Capital One online but got denied). I always pay my bills on time, manage my money well, and I never spend beyond my means.

How can i get a home loan with bad credit?

My mom has passed and left me her home, only problem is she had a reverse mortgage on the home. My fiancee and I live in the home and would like to stay in the home. How do I keep the home?
Thank you for your answers, but isn’t their some kind of creative financing i can find?

Can I get a Home loan with bad credit?

Hello,

I have bad credit at the moment, just got married and I’m trying to consider buying a house. I heard that if I put down 20% most banks will give me a loan? Just not sure how true is this? My wife has decent credit and we have the 20% to put down but we don’t want to get our hopes up. Any good mortgage company to work with people with bad credit in Florida?

which loan companies are best if your credit’s not great?

Forgot to mention I’m in the UK

What is the best private student loan company?

I have gotten the maximum amount of financial aid I can through my school, and not really enough time to poke around for more. So I need a good loan company, the two main selling points being low interest and a good repayment plan. I’ve heard a lot of good things about myrichuncle.com, and though the interest is good, the repayment plans are terrible.

Also, I took out a student loan for my education last year as well. Should I use the same loan company again, regardless of whether or not I can find a better one? Will having a different loan company this time make things too complicated when I graduate and I am paying off to multiple companies?

Any words of knowledgeable advice would be greatly appreciated.

Can I cash my wells fargo check online?

I want to cash my check and wells fargo is closed can I cash it online? With a savings account? Check account?

My brother is looking into filing bankruptcy, is that bad?

My brother has over 97,000 dollars in personal student loans, plus 60,000 in credit card debt, all accrued during college. All his debt was due to him paying for studnt supplies, tuition ect. He now has a good paying job, however his salary does not come close to covering his loans and credit card payments. He has mentioned filing bankruptcy as he can’t pay rent, utilities ect and tjhe other payments. I told him to contact a credit counseling group, and when he did they told him to get a second job, which his work schedule will not allow for. I don’t want to see him make a mistake, any tips?
I feel bad for him, he is a good kid. He got great grades, but his HS college couselor did not assist very much in helping kids with their options, she really pushed all the kids to join the army or something to that effect. He worked his butt off in college and now has a great job with the leading company in his field. There is NO time for him to take another job, he works 7 days a week right now, and often has to travel for work. If bankruptcy is his only option, fine, I just don’t want him to get pushed in the wrong direction, and me being the big sis….he always hits me for advice! THANKS!!
He does not live a big spending lifestyle. He lives with me. I feed him, help him with money when he is really short, ect. He tries to give me money when he can, however his paychecks are literally GONE with student loans/credit payments. I would not help him if he were living it up and not reponsible. However, this kid is really struggling and I don’t know how else to help him.

How bad will this affect my credit?

I want to begin by saying I do not want a solution for this problem! I am asking how bad this will hurt my credit..not how to fix it. (not saying I’m not going to try)

To make a LONG story short, there is one bill on a line of credit that my husband and I can’t afford. It’s $540 a month! I know that we can’t pay it, and for you solution givers out there, I’d like to tell you that I am only here to find out how bad it will hurt our credit!! =)

QUESTIONS:
*So, if we do not pay it, (the total amount of this line is $26,000) then what will happen to our credit? (in point value perhaps)

*Will it help any that we are paying the rest of our payments on time in other areas? (ex. car, other credit bills, student loans etc.?)

*What’s the worst thing that could happen?

THANKS! Oh one more thing..we do not own a home, and have no intent to buy for at least 3 more years due to personal reasons. Also, we are NOT using any other credit cards, only paying back what we owe!:)

Living on Student Loans..???? HELP..ADVICE?

I work full time at a hospital (3 12 hour shifts a week) but I am going to school full time. I live on my own, pay bills on my own.
My bills are as follows:
rent-450
electric-100-130
water-65
car insurance- 80
cell-105-130
cable-35
internet-20

i work 35 minutes away from home, and school is 15 minutes away, so i fill up about twice a week, spending probably 120 dollars a pay on gasoline, more if i go to my visit my parents 20 minutes away..

I am just taking prereq’s right now and I have classes every day but Friday and Sundays.. pretty much all day long.
It’s hard to work school and work together, and it’s going to get harder once nursing classes start.

Now that you have the above information, my real question is pertaining to ‘living off’ of student loand. I’m obviously going to try to work as much as I possibly can, possibly 2 12′s a week instead of 3, but I’d like to take a personal loan from the bank so that i’m not struggling and neglecting school. I make decent money, up to 15.50/hr on weekends, at the job i’m at now, but it is a dead end job and i don’t want to neglect school because school is the most important thing right now.
I figured up that to live comfortably, I make about 1600/month right now, that would equal out to 70,000 for 3 years.. is that even a possiblity? I’m responsible at paying things back like rent, i will go without food before i neglect to pay rent or electric or the above mentioned bills.. however i have bad credit, everything is paid off now, but i had credit cards and medical bills waaay past due, paid of now though, but ruined my credit..

Getting another job is completely out of the question, getting rid of nternet won’t help because i need it for school, cell phone is my only means of contacting work and family, so that is out of the question, adn if i discontinue cable, i’m in a 2 year contract with directtv so i would still end up paying 20/month until the contract is up. i’ve thought everything through, i just need advice from someone who has lived off student loans while in school, or knows any information.
Also, how hard would it be to get a big loan from a bank with bad credit? and no idon’t know my credit score, i just know that they won’t even give me a freaking Old Navy card because of it. ughhh. help?
My cell phone is high because I have an iPhone, also in a contract through ATT so theres not a whole lot to do with that. Unlimited texting which i use too much to get rid of, and unlimited data is required with it because of the internet.. cable, yes i could live without, but seeing as how i’m paying 35 now, if i discontinue the service, i’m still paying 20/month for 2 years as a cancellation fee.. no matter where i move i’m still far away from something. i’m somewhat in the middle right now. from my house to school, 15 minutes one way, 35 minutes the other direction to go to work, therefore it is 45-50 minutes from work to school. also, i am in a lease, i just moved last month.

please, ppl. help with the LOAN question. I have researched and i can’t find anything legitimate to help me.
School takes precedence over work for me, but bills HAVE to be paid also…

How do I get a personal loan if I have terrible credit?

Hello. I am currently experience some financial difficulties and was wondering if anyone had any advice for me.

I need help getting out of the whole I have dug myself into, I just received a letter saying that something wasn’t reported properly on my 2008 taxes and I owe $760. Also I have about $10,000 in credit debt(some was credit cards and some were other things that I didn’t even know where on my credit), I owe a friend $400 for a loan he gave to have my car fixed, I am also majorly behind on my Student loans.

I currently am only working part time but am seeking full time employment with a promising second interview tomorrow for a store manager position at a great store. I just need someone to tell me what to do bc I can’t get a loan and I have been told that careone.com is bad for me even though I have all ready started to repay some of my debt through them.

If anyone has and help for me I really appreciate it!!

If I receive Financial Aid.. Will I be able to open up an account with UHEAA even though my credit is bad?

My credit score is like the worst and I am in debt with other “personal loans“. I have never taken out any other students loans before .. so willl I qualify or not? thanks!

What hurts your credit more? Credit Card or Student Loan?

So I am going back to school in the Spring. I am currently paying on a 3,000 student loan from my undergrad. I have been given the option to take out another loan to cover my Masters. Now, I was going to put my tuition on my credit card and pay it off throughout the semester and keep doing this until I graduate. But, I have a total of 3 credit cards and I have been working to pay them all off. Right now I have about 1,000 in credit card debit. I am on a personal plan to have the them paid off by April 2009. Now this is excluding the card I will use for my tuition.

My question is, should I take out the student loan, around 8,000 to cover my Masters Degree and use some of that money to pay off my credit cards? Or should I just forget about the loan and put it on my credit card and pay on it each semester?

Which looks worse on a credit report? A student loan (that has never been defaulted on) or multiple credit cards (that have never been defaulted on either)?

I want to wait, but I have loans out…what should I do?

Basically, I went to school for I don’t know what…I can get an associates in Social Services Management (useless, I know.) Or a associates in Management. (more practical)
Truth be told…I want neither of these things for my career. I am 100% sure I want to become a chopper pilot.
However….I feel like it’s the right thing to do to take a break! I work full time at a restaurant and make decent money. I am happy. I have a boyfriend here I plan to marry someday and an awesome family.
I have to go out of state for chopper school. And my first job will be away from here. I am more than willing to do this, but I feel this is not a time.
I have came to a point in my life where it feels like I have a deeper meaning and I am so blessed. I know that changing things up right now is not the thing to do. I feel I should stay here for at least a year and then go to chopper school. I am in no hurry.
HOWEVER! I have these loans to pay back but I cannot afford to live on my own and go back to school. I have to work full time in order to stay here. And I cannot work full time and hold a full time status at school to defer my loans.
What can I DO???? lol I am 25000 in debt with loans…I cannot afford to make my monthly payments along with my rent, power and car payment….My mother is paying my insurance (God bless her) I am not worried as much as I am curious of how I can defer….I have also explored the option of online classes….I just need some input…Thanks

My auto loan is marked as a charge-off even though I have been making payments?

HSBC stopped sending me my bill in nov.2007, I thought it was odd (I have never missed one payment in the 3 years I have has this loan) I called them,and was directed to “national bankruptcy hotline” and tried to register online to pay and it would not let me.So I could not get thru to HSBC. Turns out my co-signer (my father!) filed for chap13 bankruptcy, and my car was dragged into that. So here I am not paying my bill for the next several months, thinking that ok when the bankruptcy is clear, I can start paying my bill again, my father’s lawyer did not even know what was going on. So in feb.2008 I receieve my FIRST notice in the mail from HSBC stating if I make all late payments (total 1500.00) by a certain date, they will not pursue the car, and it would be like I never missed a payment at all. I paid it of course, and have been making my monthly payments since then (even though i still dont receive a bill).

I checked my credit, and i have a negative account with HSBC stating a charge-off on the auto loan 4 months late payment and late payments as of 06/2008!!!!Past due amount:10,200$. I am completely frustrated, I have been making my payments every month now! I even tried to dispute the claims and nothing happened. I talked to national bankruptcy hotline since no one at hsbc will say a word to me, and they said since I made the payments late, it doesnt even matter even if the car is in a bankruptcy. So now i just want to sell my car, and pay if off, just be done with the whole mess. Is there any possible way to get this cleared from my credit? Thanks for any advice!

3 of my student loans have 14.5% intereste rate!scared!?

and another private loan is 11.25%:( All of these are private loans, and I have another 10K in federal loans with really low interest rates. I have $20,000 in private loans at this interest rate, and I’m started to panic! I have a few semesters left, then my 6 month grace period, and I’ll begin repayment. I wish I could just find a sugar mama to help me pay this off. I’m a geography/GIS major, so I should have a good job making 50-60K/year starting out, but I can’t rely on that hopefulness. Is there a way to consolidate all these private loans together? They are through sallie mae, btw.

andrew

Tell me about the Federal Perkins Loan?

The college I’m thinking of going to is offering me a Federal Perkins Loan. I’ve tried to avoid loans (relying on grants/scholarships instead) up till now, but if I go here it looks neccessary.

Have any of you had experience with this loan? How does the interest compare with other student loans? How does the repayment process work?

HELP!!!

Private Student Loan problem…they want $670/mo. and I make very little.?

I was on the phone with Sallie Mae this afternoon. I have a private loan through them for $45,000+-. The loan just entered the repayment period this month (after 2 6-month forbearances) and they are asking for $670.00/month. Here are my monthly finances as of today (I live in CA):

rent: $1025.00
utilities: $150.00
food: $200
transportation: $150
fed. student loan: $50
clothes/etc..: $50
misc.: $200

Total: $1825

This doesn’t leave much money for private student loans. Is there a maximum (by law) that they can expect based on my income? Do I have any other options? Please help!!
I take home $2000 per month.

Is $60,000 too much debt for student loans?

I am currently pursuing my A.A. in Mass Communications, and am considering pursuing my B.A. in English once I finish my Associates. However, I will end up owing the federal government $57,000 in student loans, which is the cap, even with the assistance from Pell Grants.

I work at a public library, and the pay is not good. We are struggling to pay our bills as it is and having to depend on food stamps. All was fine until my husband (who is only 34 years-old) had his second heart attack when I was pregnant with our first child. Our son is now 19 months-old, and I am definitely not planning to have anymore children because of our situation.

My educational background also includes English Honors & Creative Writing courses, which I took in high school; I graduated with a cumulative GPA of 3.8. I started at a state university, but I had to drop out and move; my GPA was 3.6.

I am *desperately* seeking a good-paying career so I can provide for my family WITHOUT government assistance. I am trying to do everything I can to boost my résumé and market myself, but is being $60,000 in debt worth it? I know the federal government offers an income-sensitive repayment plan, but I do NOT want to borrow all that money for that reason.

Should I pursue my B.A. in English, despite the money, or will I find a good-paying career with an A.A. in Mass Communications?
My career goal is to be a writer / editor.

should i take additional private loans???

Hi I have completed law school and have been trying to pass the bar for almost 2 years without succeeding. I have about 90,000 in federal student loan and only about 200 left in my bank account. I need more money for bar prep and to live on. I was granted a15,000 bar prep loan from citi student loans and I’m debating on whether to take it or not. If I do not take it I would move back to my parents’. My parents are also in great debt and will not be able to support me in any way. I have fear towards taking up another loan especially since I dont have plans for employment and if I continue to fail the bar exam I really might end up in the streets. Another thing that worries me about this new loan is that it is a private loan from a private company and they might not be as tollerant and generous as the government. I have been able to defer my repayments but if I take up this private loan and they are up at my door demanding repayment when I’m still unemployed then I would rather try to work my way around without taking up the loan. So should I take up the loan or not? Please help!

Does anyone have a solution to a financial crisis like this? I get so scared that I cannot concentrate on my study and cannot sleep either. I worked for awhile but earn less then 500 dollars a month working crazy hours so I am thinking that takin up a job is not worth it at all. What do you all think? Can anyone suggest a way to live through this crisis, get myself on track to lowering my debt and start saving up for the future? Thank you any help will be greatly appreciated!!
thank your for your answers. i would like to add that the reason that im considering this is because i have been working for the past 2 years. i am thinking that maybe it was because that i wasn’t fully concentrating on my studies that got me into this situation. i feel strongly about this profession so quiting is not an option for me. thank you

If you are having your taxes taken due to defaulted student loans, do they take your state too? I got state.?

I got my state taxes last week. IRS site says that my federal will be deposited the 6th. I set up for repayment of my loans and they accepted it and set up to take it off my debit card for like the next 120 months. lol. So does that mean I am not going to have my taxes offset? I got comformation from the Student loan company that they had accepted my payment plan and debit card set up.

Thanks!
Ed Fund website says that my loans are in default, but they just accepted payment arrangments and to take it off my debit card today. IRS site says that my refund is suppose to be deposited tomorrow (6th) and I got my state taxes last week. Anyone know if that means that they are lifting the offset they had tried to get? Now IRS site says they dont have any information on my taxes at this time. Acting like they are updating my stuff. Thanks!
I just got off the phone with EDFUND, they said that my taxes are getting offset this year, but the nice lady I got (noy the jerk that I talked to first) in Post Default department helped me to figure out what paperwork I needed to file for extream hardship. I should be getting it back from them, just going to take a few more weeks to a month to get it. She was so nice and made me feel alot better. So even if your taxes were offset and you are getting eviced or have shut off notices or medical situations you can still possibly get your tax return, but she said that I needed to be sure to make the payments that I had arranged with them on time while I am waiting to get the money from them. I guess its one of those things that I did this to myself, but I need to get myself out of it. EDFUND helped me alot. If you have to talk to someone there about this type of stuff, DEFFINITLY talk to the POST DEFAULT DEPARTMENT. If you show you are willing to pay them, they WILL help.

consolidate student loans?

I recently graduated and have around 20k in federal perkins and stafford loans. I’m not exactly clear on what the interest rate for all of them is but some are fixed, some are variable. I will be entering the repayment period for most of these in the next few months.

If I consolidate, what kind of interest rate can I get? what are the fees? what are the options?

I am not interested in an extended payment plan or anything.

If I use the William D. Ford Federal Direct Subsidized loan for this fall semester….?

my first time ever taking out a federal student loan at a undergraduate university and plan to transfer to some other university the next semester, (spring 2010) does that mean I have to start the repayment once I transfer, because it states that “No interest accrues while in school at least half-time, but repayment begins six months after dropping below half-time”…I’m a little confused does it count if I transfer to another university the next semester, or does it mean I have to at least stay in school in order to avoid the repayment just yet…I don’t want to start doing the repayment now, I want to repay them back once I graduate with a undergrad degree….HELP I am soo confused.

Is it possible for me to get a loan online? Like yahoo?

With bad credit
And I don’t want to pay transfer fees….enough scams.
And I already tried prosper.com
And my bank is not a good idea I owe them from my maxed out credit card for school.

Any e-mails or know someone who can help me?
I don’t mind giving any I.Ds of me and even a picture! Am not going to steal.
I need my own place plus for school am going through some things here…
college plus second and thrid job…is that possible and studying??
We have the rock casino very well known…thanks I will try that.

where can a get a loan online that’s not a scam?

Why am I getting denied for a pay day loan online?

I make more than 1000 a month I get paid every week.. i dont have bad credit.. why do I get denied by every single one online? I dont understand it . are those things a scam or what?? is it real??? how do I get approved???
isnt that a good thing to repay?? LOL. guess just a way for them to get more money out of people for all them fees and shit

How can I get a easy loan with no transfer fees?

First I will say I already tried Prosper.com they said my credit is too low.

I have tried to get a loan online but found out it was a scam so am not with giving transfer fees even if I had it.

I don’t mind giving any information about me inculding a pic of me! Am not going to steal. And will pay back.

I do have bad credit that is getting a little better by me paying it off I had to use it to the max not for clothes and jewley…I wish but for college at the time because my money came late.

So no transfer fees and with bad credit does anyone know of anyone?

I’m getting sick of the scam artists. Are there any legitimate loan brokers online to deal with low credit?

Has anyone ever used an online pay day loan?

If so, how much do they expect in return, is it a scam, ect?

For example:

https://www.faxlessfinancial.com/howitworks.aspx#

I don’t think it’s the best idea. Flashy website and a million dollars in interest rates. They all sound like legalized loan sharks.

How can I make £800 in two weeks legally. ?

Need new passport and airfare to start job abroad. How can i raise the cash without a loan or online scams and comission work like catalogues?

Why does John McCain hate America so much?

John McCain was a part of the Keating 5 involved in large scale cuorruption during the Savings and Loan crisis in the late 1980s. Why does McCain hate America so much that he would get involved in this level of corruption when the entire Savings and Loan industry was about to come crashing down? Is this the man we want running the economy and making executive decisions? Won’t he just protect his cronies and get us into even more economic trouble than we already are?

What do you think of this quote from the New York Times from 1999?

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates — anywhere from three to four percentage points higher than conventional loans.

”Fannie Mae has expanded home ownership for millions of families in the 1990′s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980′s.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260

Will Republicans be able to restore the US to the Glorious Reagan Days in just 2 years, I can hardly wait for?

SDI no bid Contract scams, Selling weapons to our enemies, Giving the Taliban Billions of Dollars, Sky High unemployment, 20% interest on Home Loans, Resolution Trust giving Treasury Dollars to the Savings and Loan Industry

Another Bush, another bailout?

In February 1989, newly elected President George Bush announced to the American public that he would set up a programme to rescue the stricken Savings & Loan industry. The announcement made plain for the first time the depth of a financial sector crisis that had been brewing throughout the 1980s and which regulators had been unable to defuse.

Estimates of a clean-up bill of around $30 to $50 billion shocked US taxpayers at the time, but turned out to be optimistic. Today we know that between 1986 and 1995, when the storm abated, the underwriting of US thrifts by the financial industry and the US taxpayer cost an extraordinary $153 billion.1 The extent of the disaster turned it into a major threat to the US financial system, and one of the most expensive financial sector crises the world has seen.

Who will be the Charles Keating of the Sub-Prime Debacle???

Every time Wall Street, the Savings and Loan industry, etc., steps all over their collective schlongs, the media will serve up one individual who is ultimately responsible. The politicians will trip all over themselves to get quoted on their grand solution to the whole mess. Then there will be Congressional hearings and we can watch Joe Biden listen to himself talk. And Teddy Kennedy trying to be sober for more than 30 minutes. The question is, Who will be the fall-guy for these ingenius sub-prime mortgages created by all the beloved pointy-headed MBA’s on Wall Street??? I suspect Jimmy Carter had something to do with it; he’s been out building cheap houses for people with no jobs, no income and no assets for years…

Are the democrats to blame for the sub-prime failure?

Amazing foresight!! Take a gander at this while they try to lay blame for the whole meltdown…9 years ago—this one is priceless and worth the read- right out of New York Times
——————————————————————————–
September 30, 1999
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates — anywhere from three to four percentage points higher than conventional loans.
”Fannie Mae has expanded home ownership for millions of families in the 1990′s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving , even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980′s.
”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”
Under Fannie Mae’s pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 — a rate that currently averages about 7.76 per cent. If the bor rower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation’s biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Can Barrack Obama solve the Financial Crisis?

The way I understand it is that in 1999 the Clinton administration increased regulation on banks to force them (or face penalties) to loan more money to lower income families. The result was liberal lending practices for FNMA backed loans that eventually led to subprime loans. Peter Wallison is quoted in the NY times in 1999 as saying “In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

In 2001 the Bush administration tried to remove those regulations forcing banks to do something they did not want to do. This was viewed as protecting rich people and Barney Frank led the defeat in congress and we continued with the liberal lending policies. After that 9/11 happened and Bush spent every last bit of political capital on that and had nothing left to fight the financial issues. As long as homes kept rising we were fine. Now we are not, the subprime crisis set up by the Clinton Admininstration has now caused a financial meltdown (as foretold) and the Republicans are being blamed (more out of ignorance and short term memory from many people) by 8 years of financial policies– which one. Seriously, the one financial policy they tried to pass to help prevent the problem caused by the previous administration was defeated by the democrats– this is the results of their financial policy.

That said…Is Barrack enough of an independent person to tackle the financial crisis without being swayed by the “good ideas” of the past that have led to this crisis. Can he avoid the sins of the past even though he has hired former FNMA chairman Franklin Raines who was in charge of FNMA when the regulation instituted in 1999 went into place and spoke so highly of how great an idea it was (lending money to people who can’t afford homes sure sounds like a nice thing to do on the surface), and who also left job under ethical allegations on the order of $100 million dollars in spending (in addition to his multi-million dollar salary)?

As Beta said, Obama did not ‘Hire’ Raines, the source is the Washington Post regarding advising Obama thus he did not pay Raines, but that is irrelavant. His predecessor at FNMA, James Johnson, is a campaign advisor for Obama and also had some shady issues with his post at FNMA that are outside the scope of this. I went down the rabbit hole of blame, and there are several contributors for the financial crisis.

Since we are getting bogged down on some things…the real question here is not whether Obama is trying to come up with a plan for the economy, I think he is asking the right questions, just to the wrong people. Will he be succesful in light of the people he has advising him? The economy is bigger than 1 man, but policy is still critical (e.g. the Glass-Steagall Act in 1933 (repealed by the Gramm-Leach-Bliley Act in 1999))

Why do you trust McCain on the economy? ?

When he was a culprit in the Keating 5 Scandal?

The Keating scandal is eerily similar to today’s credit crisis, where a lack of regulation and cozy relationships between the financial industry and Congress has allowed banks to make risky loans and profit by bending the rules. And in both cases, John McCain’s judgment and values have placed him on the wrong side of history.

When the savings and loan industry collapsed, Keating’s failed company put taxpayers on the hook for $3.4 billion and more than 20,000 Americans lost their savings. In 1990 John McCain was rebuked by a bipartisan (three members from each party) Senate Ethics Committee For Exercising “Poor Judgment’ for intervening with the federal regulators on behalf of Keating.” The ultimate cost of the crisis to American taxpayers reached more than $120 billion.

Knowing this, do you trust McCain’s judgement?

Yes, Dina is correct he was not found guilty as being a key player, but he still acted on behalf of Keating, hence his rebuke in congress.

Did he really inherit this from Bush?

This current administration continues to claim that the economy is worse than originally thought; they place the blame on the Bush Administration’s “Failed Policies” for eight years, and Obama supporters continue to blame the economy on what Obama “inherited” from the Bush Administration. For those of you in this camp, can you please address these facts? Please – no name calling, no ranting. I would like to see some citations and facts only.

In 1999, the New York Times reported that Fannie Mae was taking on more subprime loans, which it said may not pose too much of a problem in flush economic times (that was 1999, remember?) but it ” may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.”

You can read the article here: http://sayanythingblog.com/entry/new_york_times_in_1999_fannie_mae_taking_on_more_subprime_loans_may_put_com/

In 2001, Bush, upon taking office, warned that the two entities were overleveraged; he said that “their failure could cause strong repurcussions in the financial markets”

WSJ Article here : http://online.wsj.com/article/SB123137220550562585.html
In 2003, George Bush proposed a new agency to oversee Fannie Mae and Freddie Mac. This was reported in the New York Times, here:

http://www.nytimes.com/2003/09/11/business/new-agency-proposed-to-oversee-freddie-mac-and-fannie-mae.html?sec=&spon=&pagewanted=print

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

You can read for yourselves about Dodd’s sweetheart deals from Countrywide mortgage. You can read for yourself about Barney Frank’s romantic involvement with a Fannie Mae Executive; you can read for yourself about the campiaign contributions made by these GSE’s to the Obama campaign –

One last link: http://sayanythingblog.com/entry/regarding_fannie_mae_and_freddie_mac_regulation_the_republicans_were_in_fav/

So my question is, How is this George W. Bush’s fault? What exactly were the “failed policies” that led to this mess, that Obama inherited?

Here’s another question – when you weigh the apparent blindess/stupidity/criminality of the Democrats in dealing with this crisis and think that “maybe they aren’t so stupid after all …” and pair that with the comment made by Rahm Emanuel, “Never let a serious crisis go to waste” http://online.wsj.com/article/SB123310466514522309.html

Ask yourselves, “Where did this crisis come from? What is the Administration doing with it?” Incredible opportunity – perhaps no coincidence.
US Veteran and others – Yes, yes, I have heard all the talking points about Bush=Stupid and Bush=Daddys Boy – I specifically asked for citations and links that will show exactly how this is Bush’s fault. I provided my evidence – where is yours?

A confusing student loan situation?

I am trying to help my neighbor figure out what is going on with her student loans.

A bit of history she had defaulted a few years back and very recently completed a loan rehab program. Right before compleation of the program she was offered the chance to participate in the William D Ford Program (what ever that is) She filled out all the paperwork and sent it back. She selected the Income Contingent Repayment plan.

Soon after that she is sent notice that Sallie Mae is the new lender (before finishing rehab it was GRC) and that her new payments would
be $50.08 instead of the $58.00 she was sending to GRC. The new payments were to begin Feb 24, 2009. (she even has a payment coupon book)

She called GRC to see if she still had to pay them in January and was told that she did not.

Then In January she receives some paperwork from Direct Loans (the same paperwork she had just submitted to GRC) She contacted direct loans and told them she had already sent the info to GRC Direct Loans told her that she would need to send the paperwork to them anyways.

Before she could even send it in she gets another letter from direct loans confirming that she has elected to participate in the income contingent repayment program and that her payments would be $0.00 and that there is $0.00 owed.

She calls direct loans to verify who and what she is supposed to pay.
She is told that until consolidation is finalized to pay sallie mae the $50.08. When consolidation is finalized her payments would go to $0.00.

Thing is every income contingent calculator she and I have been too her payment does not come out to $0.00 it comes out to anywhere between $25 and $140.

Can some one shed some light on the real deal here?

Thanks.