[Erin] Rewarding the guilty

You're assuming that there's value left in Countrywide. There isn't.

Dodd = Frank.

See, e.g.: money.cnn.com/2008/05/08/news/economy/frank_omnibus_housing_bill_vote/index.htm?cnn=yes

Nationalize Countrywide, revert all of the adjustable rate loans to their original interest rates, and hold the loans until the balances again fall below the assessed values of the homes used as collateral.

It's not about a bailout, folks. It's about aiding and abetting the notion that profit is an American value, and must be protected at all costs.

Oh, and the day after nationalization, bring indictments against everyone in Countrywide management with direct connection to their lending practices.

Dale Price - Okay, Frank /= Dodd, but from what I can gather, the differences seem to be on stuff other than the $300E9 bailout.

From the article I cited:

Banking Committee Chairman Christopher Dodd, D-Conn., and ranking minority member Richard Shelby, R-Ala. are negotiating a housing package that could include GSE reform, FHA reform, and a Dodd FHA rescue proposal similar to Frank's.

See also here (*):

The revised Dodd-Shelby package would include provisions in the earlier bill, such as language that would allow the FHA to guarantee up to $300 billion in new mortgages for at-risk, subprime borrowers...

Also here (**):

Chairman Chris Dodd's response to the subprime mortgage problems is very similar to that proposed by Representative Barney Frank (D–MA) [...] [W]hile Frank's plan would be financed with government tax money, Dodd's would be financed by imposing a 1.2 basis point (0.012 percent) fee on Fannie Mae's and Freddie Mac's portfolios...Like the Frank plan, it is essentially a government buyout of problem mortgages disguised as a refinancing plan.

And here (***):

Dodd's FHA plan is similar in structure to one sponsored by Rep. Barney Frank, D-Mass., and passed by the House on May 8 in a 266-154 vote. One key difference, Dodd's FHA plan would be in effect through 2011 and Frank's would go through 2012. Dodd's plan would also not go into effect until Oct. 1...To qualify for an FHA-backed loan in either proposed program, lenders would have to be willing to write a new, 30-year fixed rate loan for borrowers for an amount no greater than 90% of the appraised value of the home...[Borrowers] must have a mortgage debt-to-income ratio of more than 31% under Dodd's bill (or 35% under Frank's version).

A quick Google search suggests that many people view the two as pretty much interchangeable.

It's entirely possible that the taxpayer cost of Frank/Dodd could be either $1.7E9, or $25E9, depending on how bad the loans are, how bad the housing market & economy are, etc.

(*) nationaljournal.com/congressdaily/cda_20080617_1222.php

(**) heritage.org/Research/Economy/wm1941.cfm

(***) money.cnn.com/2008/05/20/news/economy/dodd_shelby_deal/index.htm

As a practical matter, havent all these loans been sold and resold so many times that it is difficult to tell exactly who holds the loans? I wonder if they will charge any of the folks involved in passing out the Triple A bond ratings?

Steve

Mr. Dodd can say good by to Obama's short list (or any list) for VP.

I agree that those who engaged in fraud should be prosecuted. But, the long term solution, it seems to me, is to change the laws so that it is not as easy to get easy credit loans. Some things should be hard because if they are not they encourage responsiblity.

At this moment, I am happy to be a renter who relies on public transportation and shoe-leather to get around.

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