Comment on CFPB-2012-0021-0001

Why This Plan Will Work To fix the problems in our economy, we must recognize where they originated. Although the mortgage industry has indeed contributed to them, the problem actually started about eight + years ago, when jobs started to disappear and wages went flat. Over the course of 9 years if you take into account a 3.5% inflation rate American’s spent at least 28% more year over year for the same items over that nine year period that wages stayed flat. If a spouse lost their job even for 3 months, they were then never able to catch back up. Shared-Risk Based Solution This “shared-risk based solution” can keep the government from taking on all the risk and responsibility of failed mortgages. By sharing the risks and benefits of the risk, you could take the $700 billion bailout and expand it tenfold. If the bleeding doesn't stop on foreclosures, then the $700 + billion infusion will look like a small down payment on the problem, and the U.S. could be headed for junk-bond status when it's looking to borrow money in the future. Not to mention having foreign investors watching our country’s wealth erode at an unprecedented pace makes future investment less likely. America’s ability to attract foreign investors to buy our 10 year bonds have kept our 30 year fixed rate mortgages at a low rate. Think of how much worse things would be if the bond market collapsed and long term interest rates ( 30 year mortgage rates ) were again in double digits. Implementing Our Proposal Our proposal is that HUD, show their teeth on lenders who use their FHA programs by demanding that true FHA guidelines are followed or lose their license to sell their product. Then through either FHA or even a Non Profit ( NGO ) be set up that will allow public and private sector funds from both the government ( local and or national ) and banking institutes so that this plan may be implemented immediately. The government can set up a $5,000.00 tax on a