I always found it funny how people are called “homeowners” when they have a mortgage. Obviously, they are not an owner, the bank is the owner. Ahh, the “minor” details of life. Chalk it up to another psychological weapon.
Now what is not psychological, is the fact that millions of mortgage borrowers may actually be able to continue the forbearance programs they are currently under until 2022.
Check this out,
The Consumer Financial Protection Bureau (CFPB) wants to put safeguards in place to ensure millions of families aren’t forced into foreclosure. A year into the pandemic, about 2.5 million homeowners are still enrolled in some type of forbearance program.
CNBC
Yet, the stock market is at record-record-record highs.
The forbearance programs were put into effect during the Trump Administration. This was to prevent American’s who lost their job from also losing their homes due to government imposed lockdowns over the pandemic.
Further, the CFPB wants to put in place a review period before mortgage borrowers can be kicked out of said home.
It becomes more interesting…
Emergency protections for homeowners will start to expire later this year and by the fall, a flood of borrowers will need assistance from their servicers.
Actually, the forbearance programs continue to be extended time and time again. The Biden Administration has already extended them twice. Currently, most forbearance programs were set up by the Federal Governement under the “Cares Act”. However, private lenders also setup their own.
Nevertheless, the Consumer Financial Protection Bureau is currently seeking public comment until May 11th on their proposal…
In addition to requiring mortgage servicers to undertake a review period, the CFPB is also proposing a streamlined loan modification process, which typically allows homeowners to apply to have their loan interest rate reduced, extend the term of their loan and/or reduce their monthly payments.
That’s right kiddos!
The government may actually change the rules (again) and extend mortgage loan terms!
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How long you ask?
The expedited process would only be available for loan modification options that do not increase homeowners’ monthly payments, extend the mortgage’s term more than 40 years or charge any fees.
As long as the mortgage term does not go over 40 years, well then, your mortgage company should be able to help you out.
Personally, I just could not get over that. I don’t know if I ever said it here, but I have said it a lot at home.
In order to keep things humming along, the government will make 50 year home loan terms.
It looks like we may now be well on our way there.
This ties right into a Reason article titled, “Does National Debt Still Matter? America’s Greatest Gamble”. That is in the same spirit as the article we wrote titled, “Modern Monetary Theory,” Print That Money Baby!
It seems the new norm is just perpetually debt. I mean come on. If I can finance a $20 dollar polo shirt for $3 bucks a month, why shouldn’t “homeowners” be able to finance their home for 40-50 years?
After all, it would probably be discriminatory or racist not to do so.
P.S. World Bank chief expects G20 to extend debt payment freeze through end-2021. So everyone is getting bailed out these days. Perpetual debt is the new norm, so go ahead, buy that car, house, and who knows what else. The bankers and globalists are depending on you!
Happy Thursday!