Feeding at the US Government Trough Continues

Senate deal struck on mortgage aid


A major part of the legislation would allow the Federal Housing Administration to insure $300 billion in new loans for at-risk borrowers if lenders agree to write down loan balances below the appraised value of borrowers' homes.


Now let me see how to rip this system off...


Ok then. Get an apprasial on this house worth 350 000$ to , say 200 000$

Bank writes it down to 199 999$ and the FEDERAL (US Governement) Housing Admin insures it.

Price continues to drop. No one buys the overpriced house.

Bank takes the cash from the FEDERAL government.


Plan would let government back loans for at-risk borrowers. Key lawmakers reach compromise - taxpayers will not be on the hook if loans go bad.


Really ? I don't believe you.
The only way for the tax payers not to be on the hook for these loans is for the federal government not to make them. You *HAVE* to know at least some of them are going to go bad and get collected on from the government coffers.
Statements to the contrary are simply outright fabrication.

The banks made these bad loans.
The banks are now getting protected from these bad loans.
Joe Average is left to twist in the wind because the banks lost money on him so they're gonna slash his credit rating anyways.

Its so American.