In his latest demonstration of fiscal idiocy, Barack Obama has proposed an irresponsible new policy with utterly ridiculous and immature features.  I’ll give you three examples of the sheer stupidity of his new proposals, but first I want you to be clear on a few terms:

Borrower - this is a person who has taken out a mortgage loan

Investor - this is a person or company whose money was used to fund a borrower’s loan

Loan Servicer - this is a company that collects payments and interacts with borrowers on behalf of investors

Note that loan servicers don’t really have “skin in the game” - they’re simply a paperwork processing service.

So here are 3 examples of Obama’s latest stupid policy proposals:

• Bribe Loan Servicers to execute mortgage modifications by giving them $1,000 per modification
• Bribe Loan Servicers even more by giving them an additional $1,000 per year for up to 3 years if the Borrower stays current
• Bribe Borrowers to unnecessarily modify mortgages by giving them $1,500 if they have their mortgage modified before they are in default!!!!!!

This is SHEER STUPIDITY, my friends.  Obama is proving how much of an economic and intellectual lightweight he is each time he opens his mouth.

In typical socialist fashion, Obama is disregarding the rights of private property owners (mortgages are private property owned by investors) by bribing loan servicers to modify mortgages that they don’t own.  Remember - Loan Servicers do not own the loans they service, they merely manage the interactions with the Borrower.

This will cause an avalanche of lawsuits as Investors choose to defend their rights against the increasingly tyrannical policies of the government of the United States of America.

But the real kicker is Obama’s attempt to bribe Loan Servicers into executing mortgage modifications for loans that are not even in default! Yes, that’s right:  Obama wants to steal money from you - in the form of higher taxes which he’s already committed to raising - and use that money to give your neighbors (many of whom never actually genuinely qualified for their loans to begin with) a lower mortgage payment.

Let me reiterate:  Obama wants to lower mortgage payments for people who aren’t even in default.  Your money will pay the mortgages of your neighbors who are not facing financial difficulty.

This is disgusting.  It is utterly irresponsible, and demonstrates that Obama is an extreme socialist, moving this country as quickly towards Marxist principles as he can.

It’s time to fight back.  Call your congressman and senators.  Call the White House.  Tell them you’re sick of this garbage.  It’s astounding that the United States has survived and thrived economically since the late 1700’s, and has been able to effectively recover from each major (and normal) economic downturn without the federal government’s massive involvement, but then politicians like FDR, Carter, Clinton, Bush and Obama decide that the economy can’t do what it has always done, and heal itself.

The arrogance is palpable, and so is the idiocy.  Obama, you’re a fool.

As always, your comments are welcomed here at RealEstate.BryanEllis.com.