Tracy Press

 
House subcommittee passes amendment to help veterans keep their homes with a larger loan guaranty limit.

Rep/ Jerry McNerney / file photo

Today, Siebold and his peers face the ugly consequences: default, foreclosure and, in some cases, homelessness.

Recently though, federal incentives that kicked in earlier this year have taken on an added focus — specifically, to help financially troubled veterans. But some industry professionals say the government involvement is nothing more than a pharisaical show.

A congressional subcommittee passed an amendment Wednesday that may help veterans stuck on the losing side of an adjustable-rate mortgage. Rep. Jerry McNerney, D-Pleasanton, spearheaded the amendment to the Helping Our Veterans Keep Their Homes Act of 2008, which was unanimously backed by the House Committee on Veterans’ Affairs.

The U.S. Department of Veterans Affairs loan guaranty limit was $144,000 — an unrealistic low, Siebold said. With the amendment to the veterans act, that limit may soon match the newly upped Federal Housing Administration loan limit of $729,750.

 “It’s basically like the government is your co-signer,” said Siebol, who lives in Stockton. “It makes the loan a lot less risky.”

But John Hinrich, who started in the lending business 25 years ago, said San Joaquin County veterans will likely never improve their situation because of the pending legislation.

“It’s a lot of hoopla,” said Hinrich, a Tracy lender, “a bunch of window dressing — a chance for politicians to earn bragging rights.”

With their fixed income and many times shoddy credit from overseas deployment, veterans like Siebold proved a prime target for subprime lenders before the housing bubble burst.

“Unfortunately, multiple deployments can put tremendous financial strain on veterans on their families,” said McNerney in a statement issued this week. “This makes them particularly susceptible to the promise of no money down, sub-prime loans.”

Siebold said he’s thrilled the loan guaranty was increased so dramatically, but as with most veterans, the change offers no relief to him. His home recently went into default, and he said he’s resigned to the prospect of foreclosure.

Still, Hinrich guessed that at most, the higher guaranty will help only about 5 percent of veterans.

For others though, the change may come in the knick of time.

Veterans’ rights activist and Tracy resident Nadia McCaffrey — mother of Sgt. Patrick McCaffrey, who was killed nearly five years ago in Iraq — said she expects to benefit from the legislation.

Before her son left on his fatal mission, he took out a second loan on his Palo Alto home.

“He didn’t want his wife to go through financial troubles,” McCaffrey said of her son.

But when he got killed, McCaffrey and her daughter-in-law were left to foot the bill. After learning of the higher-limit veterans’ loan guaranty, McCaffrey said she hopes she can refinance and lower the monthly payments for her daughter-in-law.

“It would be a great relief to us,” McCaffrey said today. “And I know so many people who can benefit from this.”

Hinrich said some of the minority of veterans who may benefit from the increased guaranty are married veterans, who make combined six-figure incomes.

Siebold, though, said he knows several people who could get back on their feet through federal assistance of the type co-authored by McNerney.

The full House Committee on Veterans Affairs is set to take up the vote, though exactly when is still uncertain.

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written by Dave Hardesty , April 24, 2008

"Rep. Jerry McNerney, D-Pleasanton, spearheaded the amendment to the Helping Our Veterans Keep Their Homes Act of 2008."

Perhaps it was just a poor choise of words from Jennifer but "spearheaded" makes it seem this was Jerry's idea.

However it seems he was only one of 21 sponsors for the bill that still has to be approved by the House and Senate before becoming law.

Further more Jerry did not author this bill. That was done by one Bob Filner who introduced it on 12/

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written by Dave Hardesty , April 24, 2008

Oh well, hit the wrong button. Sorry about that.

Anyway, Bob Filner introduced it on 12/19/07 and Jerry didn't give his co-sponsorship until 03/13/08, behind three other represenatives and ahead of the remaining 16 others, making a total of 21 represenatives who eventually co-sponsored this bill.

While Congressman McNerney no doubt was instrumental in getting this bill out of comittee, given the time line and a total lack of testamoney in this comittee, I don't really believe the word "spearheaded" is really appropriate, given the facts around the matter. http://www.congress.org/milita...l=10704921 Provides a little more information with respect to the article, the bill and who the team players were.

Dave Hardesty

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written by The Real Silly Me , April 24, 2008

REFINANCE AGAIN AND PAY ALL THE CLOSING FEES AND HIGH INTEREST. SOUNDS LIKE A BARGIN TO ME,

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written by beam me up scottty , April 25, 2008

No good deed goes unpunished right Mr. Hardesty.