May 24, 2012: NAR releases Press Release in support of HARP 3. But fails to even acknowledge investors!!!
I may sound like I pick on NAR, I don’t mean to, but for all their millions of dollars in resources one would think they could hire a speech writer so their Presidents can sound well versed instead of possessing a myopic perspective.
The part I like A LOT;
“Eliminating the refinancing barriers homeowners face with Fannie Mae and Freddie Mac loans will help bring them relief by lowering monthly payments and reducing the risk of default.”
But, without acknowledging the losses to investors who purchased mortgage backed securities and are required to create budget projections for existing pensions and retirements for cities, states and the Fed based on a certain cash flow, makes the industry look, well, selfish once again.
At the very least, one must clearly present to a Congressman and Senator a well prepared analysis based upon empirical evidence what the losses to investors have been, currently are and are projected to be, based on negative equity and zero relief as well as the actual and projected defaults. Then, compare and contrast those loses, both actual and projected, with the loss in income due to reduced cash flows by allowing an increase in refinancing and the projected impact this might have on the overall economy and the citizens in their districts.
Mark Zandi, chief economist for Moody’s Analytics projects loses of over 6.5 Billion to institutional investors if HARP 3 is passed. This will have a major impact on other areas of our economy. Am I against this course of action? Not necessarily. But if I was an elected leader and I heard testimony from an industry representative lacking substance, I would summarily dismiss it as yet another special interest group concerned about their interest above all others.