Only if you browse the business sections of local papers are you likely to be familiar with another Big Mama liberal state program to rescue Illinoisans from themselves.
It's Blago again, and this time first time home buyers and owners refinancing their primary residence are undergoing counseling if the pending loan papers they have agreed to sign
- Permit interest-only payments
- Allow payments that results in negative amortization
- Has total points and fees payable by the borrower which exceed 5% of the amount of the mortgage
- Rely on the borrower's stated income
- Include a pre-payment penalty, or
- Include a second lien on the property, often known as an 80/20 loan
The tragedy is there are lots of young and financially-naive people who are so poorly educated and ill-informed that they don't know how bad those loans are for their wallets.
Instead of using some of the billions we throw down the public school system rathole to teach basic life skills like these, the Gov insists on yet another Big Mama feel-good state program -- served up with a glass of warm milk, a cookie and a big hug.
