{"id":17724,"date":"2016-02-13T11:12:47","date_gmt":"2016-02-13T16:12:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17724"},"modified":"2016-02-13T11:12:47","modified_gmt":"2016-02-13T16:12:47","slug":"the-negative-mortgage-rate-program-nmrp","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17724","title":{"rendered":"The Negative Mortgage Rate Program (NMRP)"},"content":{"rendered":"
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The Negative Mortgage Rate Program (NMRP)\u00a0<\/a><\/h3>\n<\/div>\n
Something Needs to be Done \u2013 A Glimpse of the Future<\/strong><\/div>\n
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In the summer of 2016, US and global economic growth rates are nowhere close to estimates.\u00a0 In fact, a global recession, or worse, is imminent.\u00a0 At home, student loan defaults are now close to 100%.\u00a0 The unemployment rate is climbing, as minimum wage workers finally realize that the financial pain of working or not working is identical.\u00a0 In Euro-land, as the weather warms up, the never-ending flotillas from Northern Africa resume swamping the Southern shores.<\/p>\n

\"NIRP\"A black hole opens up in the world of centrally planned money \u00a0Illustration by\u00a0Denis Cristo<\/a><\/p>\n

By now, the Treasury has long given up on the idea of privatizing the agencies.\u00a0 Freddie and Fannie will soon be part of HUD, surviving for the sole purpose of providing affordable housing for all \u2013 whatever that is supposed to mean.\u00a0 Policymakers have determined that the real estate market is stalling.\u00a0 Desperate times require desperate measures.\u00a0\u00a0Something needs to be done<\/em>.<\/p>\n

After an intense pow-wow between the administration, Congressional leaders and the Federal Reserve, the Negative Mortgage Rate Program (NMRP) is born.\u00a0The program is simple.\u00a0 Homeowners will be paid to borrow.\u00a0 The Federal Reserve declares that the NMRP is a brilliant extension of NIRP (negative interest rate policy), because it will benefit everyone, not just the 1%ers.<\/p>\n

\"fannie-mae-cartoon\"A good reason to break into song\u2026 \u00a0Cartoon by\u00a0cartoon by Steve Breen<\/span><\/p>\n

Here is how it works:<\/p>\n

No downpayment needed. \u00a0100% financing.<\/em><\/p>\n

No payments needed.\u00a0 This is the reverse of the negative amortization loans during the subprime era.\u00a0 In other words, it is a negative negative amortization, or neg-neg-am loan.\u00a0 The loan balance will decrease instead of increase.<\/em><\/p>\n

No need for mortgage insurance since, with no payments, there can be no defaults.<\/em><\/p>\n

No qualifying needed, hence removing the entire cumbersome loan application process.<\/em><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Negative Mortgage Rate Program (NMRP)\u00a0 Something Needs to be Done \u2013 A Glimpse of the Future In the summer of 2016, US and global economic growth rates are nowhere close to estimates.\u00a0 In fact, a global recession, or worse, is imminent.\u00a0 At home, student loan defaults are now close to 100%.\u00a0 The unemployment rate […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,558,12360,1389,12359,12358],"class_list":["post-17724","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-negative-interest-rates","tag-negative-mortgage-rate-program","tag-nirp","tag-nmrp","tag-ramsey-su"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17724"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17724\/revisions"}],"predecessor-version":[{"id":17725,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17724\/revisions\/17725"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}