Within the last few weeks, I have been hearing commercials urging people to contact their representatives and ask them to support the Mortgage Holiday Plan. The ad campaign is being sponsored by Mark Hemstreet.

Some time ago, there was a discussion on this board about the plan. I don't recall anybody answering the question, how are mortgage lenders supposed to handle not being able to collect mortgage payments for a year? Will the government have to subsidize them? Would there be massive layoffs in loan servicing departments, as the people who process mortgage payments won't be needed?

Those are good questions. I don't think the proponents have thought that through very well.

Pay off the mortgage-Problem solved.

>>Pay off the mortgage
Got the t-shirt...

I have heard those commercials as well on KPOJ. They are paid by Mark Hemstreet of Shilo Inns fame; a staunch conservative.

Website: www.saveoureconomy.com

The question has not been answered. I tried to entertain greater discussion and was brushed off.

IMHO, this is nothing more than a bunch of worried conservatives worried that they are not getting their share of the bailouts.

Since it's coming up again, I'll make sure and contact my reps and encourage them to ask the same hard questions, and ignore this, if they get the same "just focus on how good it would be to have that holiday" answer I got.

Hey, at least that's revenue for KPOJ and Clear Channel.

**Always an upside, there just always is an upside!**

LOL!!

Just read through the (few) new discussion posts they have on the site.

There is Mark, "Please read the Plan again, and you will see the light" Hemstreet, still unable to answer the hard questions.

They went from 3K total hits on the site to 26K something in MONTHS.

FAIL

There's a reason Mark Hemstreet is in favor of this, it's right on the website.

"Congress should pass immediate legislation for the President to sign into law that offers temporary relief for twelve months for all homeowners and business owners who have mortgage/trust deed/note debt obligations for a one-year mortgage moratorium forbearance period."

Remove the "business owner" from the proposal and we'll see how much Mark Hemstreet is in favor of it.

Typical greedy self centered business owner looking out for his own interests under the guise of caring for the little guy.

That's so true.

Nicely put.

Hey, I wonder if Thom Hartman would be interested in covering this? Bet he could totally and completely deflower this one in, say... 10 minutes?

Every single Shilo Inn property has a trust deed recorded, I'm quite sure.

The One Year Mortgage Holiday website may have been expanded since it was last discussed on this board because now it has answers to my question about the mortgage companies. The answer can be found here:

http://www.saveoureconomy.com/banksmortgagecompanies.html

In short, the federal government will subsidize the interest payments during the holiday. This could end up being a sweet deal to the mortgage companies, as they would be guaranteed to receive interest payments on all of their outstanding loans, at some negotiated amount.

does the holiday apply to loan shark payments too???

The definition of this payment holiday is pretty specific to "mortgage/trust deed/note debt obligations." I don't think that any old loan, like a bank credit line or a "payday loan" would be covered. Perhaps a lawyer can help us out here.

I hope that you didn't go to one of these loan sharks, 62!!

Don't bother. This proposal is so over the top assenine, a lawyer wouldn't waste their time to review it.

Now let's see if the interest on my mortgage is $5,000 a year and Hemstreets is $1,000,000 a year who's getting the better part of the deal?

Oh this math is so tough.

But, if this plan passed, neither you nor Hemstreet could deduct that interest from your income taxes.

And they would likely just add the amount to the end of your mortgage. There is no way the entire industry would just forgo a year's worth of interest. Much like auto financing occasionally allows you to skip a payment, you still have to pay it. Just at the end.

So you have a 31 year mortgage now, instead of a 30 year.

I can't see this happening anyway.

Nope. Vitalogy has it right. Luxery goods sales businesses, and property heavy businesses, like hotels are hurting huge and are just drooling at the major financials bailouts.

(I don't agree with those. I think adding to them for these kinds of businesses makes even less sense.)

Building schools, providing health care and other public works kinds of projects pays far better wages than sales people, desk clerks and other core service oriented jobs do.

And, frankly, sales of luxery goods isn't doing our economy any real good, given they are largely not made here.

Better to invest in alternative energy, or defense, or medical, transportation and other strong verticals where good paying jobs can and will result from that investment.

Trade you a coupla baristas for one skilled manufacturing worker any day. (the baristas can go to school)

Loan sharks might soon need a federal bail-out!!??
banks could go global!!??

> There is no way the entire industry would just forgo a year's worth of interest.

According to the version of the plan currently on the website linked above, the federal government would be making interest payments during the "holiday." The plan does not explicitly state what the interest rate would be during the time that the government is picking up the tab.

For the lenders, this would have the benefit (as stated on the website), that they would be guaranteed payment. People who are paying mortgages would still be paying mortgage interest, indirectly, through their income taxes. Somebody who has a large mortgage balance might come out ahead; however, somebody who has almost paid off a mortgage might come out a loser. People who do not own real estate would get screwed.

Some other countries have instituted mortgage holidays under specific circumstances, such as unemployment. I am not aware of any country that has attempted an across-the-board holiday for such an extended period of time. I am not an economist, so I will not make any predictions about the overall effects of such a plan on the economy, positive or negative.

Does Paul Klugman have any comments about this?

perhaps I should discuss it with the loan sharks down by the docks??or at their under Ross Island bridge office??