One Womans Solution to Solving the Current Mortgage Crisis

Hope Pagano
Hope Funding Group
878 East Jericho Turnpike
Huntington Station, NY 11746
(631) 423-8030- Office
(631) 423-8032- Fax
Email: HPagano@HopeFundingGroup.com

Subject: The 100 YEAR FIXED RATE MORTGAGE

Re: One Woman’s Answer to Solving the Current Mortgage (Financial) Crisis

My Bio: My name is Hope Pagano. I have been in finance in form or another all of my working life. I predicted the 84 month car finance long before it took effect knowing full well the likelihood anyone would keep their Hyundai throughout the term of the loan, but was smart enough to realize that this was the only way people could afford a car payment on a purchase rather than a lease. That was many years ago, and I have since started my own mortgage company. I have worked hard to educate myself in this field and hope that my knowledge (as limited as it may be) will serve to give my country a simple solution to a complex problem.

Topic: Creation of the 100YR Fixed Rate Mortgage to be recognized by the World Bank

Brief Description of the Program: The program would essentially allow home owners and potential home owners the opportunity to purchase and or refinance their mortgages over a 100 year term. The loans would be assumable by family immediate family members (if qualified) while allowing a prepayment penalty if paid off prior to a specified number of years determined by the Federal Government, thus protecting the investors from potential loss. The prepayment penalty should be deemed fair to both the financial institutions for their risk as well as for the borrower’s who choose to advantage of this extraordinary financing opportunity.

Benefits to Our Current Economy and Our Banking Institutions:

1) Mortgage Payments would once again fall below that of current rentals, thus stimulating the economy out of our current recession. This concept worked during the great depression in which the 30 year mortgage emerged as a vehicle of not only affordable living costs, but promoted the American dream of home ownership as attainable at the same time.

2) By extending the terms of current mortgage backed securities the Financial Institutions would be able to charge higher interest rates without a noticeable impact on prospective borrowers.

3) Delinquent home owners or home owners facing foreclosure could possibly qualify for these loans as their debt to income ratios may now fall into guideline restrictions thus lowering the need for modifications, short sales and legal expenses all which are costing the banks and the tax payer’s money.

4) The extended terms would allow for property values to stabilize, as with the lower principle and interest payments, sale prices and affordable property taxes are not as paramount an issue as overall affordable monthly payments are.
4b) If property values remain the same than the taxes are less likely to be grieved allowing states, counties and towns to budget appropriately with out having to cut services to it’s residents.

5) Interest on Mortgages is front loaded and therefore a relatively safe investment for foreign nations (aka Chi-America) who are concerned with stable long term gains. Lower payments equal timely payments and a decreased default rate.

6) The 100YR Fixed Rate Mortgage would essentially allow the home owners and financial institutions to bail themselves out rather than relying on the tax payers.

7) Lastly (for now), Lower mortgage payments equal more cash available for consumer spending and development of small business.

Benefits to Individuals:

1) Longer terms will allow many people that can not afford their current mortgage and property taxes would now be able to stay in their homes.

2) Homeowners would not have their credit ratings damaged further by late payments, short sales and foreclosures.

3) Property values in neighborhoods would cease to fall due to the low sale prices associated with short sales and foreclosures.

4) People’s pride could be restored and family stress levels relieved if we remove the fear of becoming homeless from our citizens. Parents could once again hold their heads high and do the right thing setting a good example for their children and our next generation.

In short it is my feeling that if we had this option in place our government would no longer have to worry about how to keep Americans in their homes, but rather how to fix the mess caused by a system manipulated by greed and corruption. In my opinion the tax payers can not afford the types of bailouts being offered. We need to get back to basics. Limit and monitor tax payers obligations due to companies allowed to grow to the point where they are just “Too big to fail”.

We can’t continue to print money which diminishes America’s value, nor can we continue to through good money after bad. We need to put the tax payer dollars into policing the system not bailing it out.

Let’s remember MBS are an investment and not a guarantee. If we are worried about foreign nations loosing money in our market with the use of bailouts for fear they will no longer invest in our country we are essentially putting a band aid on the problem rather that stopping the bleeding all together.

It is time we stop enabling the system and come up with long term solutions. Solutions which allow us to help our selves and restore our pride in our own abilities to pay our own bills, America included.

I hope you will honestly consider my suggestion as it truly comes from my heart. I love my country and want so badly to see it restored to its glory among the world as a great leader and example for all.

Respectfully,

Hope Pagano
Concerned Citizen