My New Blog

 12:21:54 PM... this whole stimulus thing is nothing more than pork spending under the guise of "economic stimulus."

If the feds are really serious about fixing the economy they would target the sectors (housing and investment banking) that caused the whole mess by:

A) Continue to aggressively purchase MBS by the Fed, this keeps rates low.

B) Make receipt of TARP funds tied directly to participation in the "Hope for Homeowners" program.

C) Waive valuation requirements for rate/term refinances on primary residence full doc mortgages on both FHA and conventional loans. Too many folks who bought at the wrong time can't take advantage of the rates through no fault of their own which will eventually lead to more defaults. Refinances also put more disgressionary income into the economy.

D) Regulate and streamline the "short sale" and BPO process. Too many banks are centralized and understaffed in their BPO depts which cause the re-absorbtion of these properties- which will stabilize and re-balance the market- to be a complete cluster f--k and too time consuming assuming you can actually get one done. REO's and BPO's need to be handled locally by local experts, not by centralized understaffed dumbass junior bankers in BFE.

E) Reinstate seller funded non profit down payment assistance (Nehemiah, AmeriDream) programs but limit the contribution to the FHA minimum statutory contribution, now 3.5% of the purchase price.

F) Investigate and actively prosecute- which includes forfeiture of primary dealer status- the bond funds, hedge funds, and rating services (Moodys, S&P, et al) that rated and sold MBS packages full of subprime loans that were falsely rated A+ or higher.

G) Force recipients of TARP funds to fully account for the expenditure of those funds. Make the banks use those funds for small business lending and refinancing credit cards, mortgages, and consumer loans. Too many banks have parked the "bailout" money in tax free municipal bonds and "safe" investments to prop up their balance sheets instead of putting the money to work in the community.

H) Enact sweeping changes in the credit card industry as far as rate changes, late fees, reduction in credit limits on good standing accounts, etc. If I tried to pull some of the stuff credit card issuers do daily in my buisiness I would be behind bars and with good cause.

I) Enact drug and alcohol testing and tie any food stamp or welfare receipt to community service (just like folks on probation have to do). Mandatory community service for recipients unless the person is completely disabled, and to me completely disabled= quadraplegic.

J) Raise the reserve requirement for options trades and aggressively regulate hedge funds.

I could go on all night but those 10 things would be a great start and would jump start a recovery. Naturally, since accountability is such a huge part of my plan and the fact it makes the banks and investment houses target their spending and receipt of govt money, it would never be considered, let alone enacted

Thank you,

Pierce Outlaw

Patriot Home Funding, Inc.
101 Wymore Road
Suite 320
Altamonte Springs, FL 32714
Phone: (407) 389-5132

E-mail: poutlaw@patriothomefunding.net