About Michael Kraus




  1. phily1e@yahoo.com' Bill says:

    If the note says that the loan can be paid off, then they have to take a refi – from the government, or from whoever. Legally, the government doesn’t have to do jack.

    Also, The interest profits would have never been calculated into the cost of the loan at inception. When a homeowner took out a 30-year 6% loan in 2007, the originator had no belief that it be carried for a decade or more at that rate. Most refi within the first 5 years. It is built into the expectation of the loan. They have already had a gift for this going on as long as it has.

  2. phily1e@yahoo.com' Bill says:

    From my reading, the pushback referenced above isn’t against refinancing, but through loan modifications.

    There are two Obama plans. The first one doesn’t require congress, and would reclassify hardship as “underwater”, allowing homeowners to expand the use of HAMP to modify the interest rate. That’s the one which is facing resistance.

    The 2nd idea is to expand HARP by allowing Fannie/Freddie to charge slightly higher interest rates to account for the risk of the underwater loans. This requires congress. Nothing the investors can do about this one, as the loan will get paid off in full as a standard refi.

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