"USDA's Rural Development program nearly broke"

[WhiskeyGirl]

MINNEAPOLIS — A federal loan program that has helped hundreds of thousands of Americans buy homes in rural areas is about to run out of money, potentially crippling the real estate market in many small communities.

The US is broke, we ran out of money years ago.  How much are taxpayers paying to supply these loans?

The USDA's Rural Development program provides 30-year fixed-rate mortgages at market rates. Buyers do not have to put any money down, unlike loans from the better known Federal Housing Administration, which requires a down payment of 3.5 percent. And unlike FHA loans, there are no monthly mortgage insurance premiums in the USDA program.

Why not?

Some were first-time buyers, while others were families who wanted to trade up to bigger homes but did not have enough equity in their old homes to make the big down payments required with a conventional mortgage.

"It would crush us not to have it," Hill said. "It really would. Our whole office uses it. ... I hope they figure something out quickly."

Program officials note that although the loans are aimed at low- to moderate-income buyers, the program's default and foreclosure rates are lower than FHA loans.

I read something a few months ago that well heeled Democrat folks in big cities/urban areas were encouraged to buy second homes in rural areas where their votes were really needed.

How many of these homes are second homes?

The loans are guaranteed by the federal government, so there's less risk to the participating lenders, which include big national banks such as Chase and Wells Fargo as well as smaller mortgage companies.

There was a caller to Limbaugh's show yesterday who reported working at a local bank.  They weren't allowed by the government to participate in this program.  It was only for the government.

She indicated that the loans were done without income or employment verification.

Is this to avoid suspicion?  Encourage fraud? 

A slush fund for 'Friends of Obama'?  How many of these new home have folks that register to vote and require absentee ballots?  Anyone check an ID to ensure REAL residency in the area?

How do you check to ensure that new folks aren't really living and working elsewhere?

The Rural Development loans also have a faster approval process with sophisticated automation. Applications are reviewed using artificial intelligence that builds on the progam's experience with hundreds of thousands of other loans. The process makes it easier to predict accurately whether buyers can afford their payments.

And unlike FHA, Rural Development has a network of field offices nationwide that review the applications before closing.

"This is a very well-performing program, a very safe lending program," Tremlos said. "Even though it's a no-down-payment program, there are lots of safeguards to take that higher risk into account."

Democratic Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee, and four other members of his panel wrote letters to Agriculture Secretary Tom Vilsack last month supporting the program and proposing immediate funding options.

What kind of safeguards?

Do folks have to supply a government issued picture ID?  Legal residence?

Are these approvers Obama appointees?

"I think it's a great program," Kartak said. "I think it worked well for me, and I think it's great they're using it as a way to build up rural areas."

Where are these folks getting jobs?

http://www.google.com/hostednews/ap/article/ALeqM5jacOzyqP_AViz-tO6iCmnDVkV4ZwD9F307IO0

[WhiskeyGirl]

MILLSBORO, DEL. —

Construction of Safe Haven Animal Sanctuary can start later this spring as a result of a low-interest federal loan, according to ececutive director Anne Gryczon.

The U.S. Department of Agriculture (USDA) approved a Rural Development Program loan in March for the Safe Haven No-Kill sanctuary on Shingle Point Road between Georgetown and Milton.  Once started, the General Contractor is required to finish the building in 10 months, weather permitting. 

How is No Kill Different from
"low kill"?
Some animal organizations/agencies now call themselves "low kill."  Presumably, that is intended to sound better than "high kill."    Nevertheless, "low kill" is an admission of the obvious fact that animals are still being put to death at these "shelters."  These are not just "mercy killings" when an animal is suffering from terrible pain.
 
Should homeless cats and dogs be killed just because there is no space in a particular building?  More and more people say that space for homeless cats and dogs can always be found by means of proactive adoption, foster families, and transport to other shelters with space.
 
Should homeless cats and dogs be killed just because they need treatment for illnesses/injuries?  More and more people say no, that is heartless

http://www.sussexcountian.com/features/x57959847/No-kill-sanctuary-will-break-ground-this-spring

Cuts in Medicare/Medicaid for humans, where is the humanity when it comes to human beings?

Are humans disposable to Obama?

Or maybe just some humans, the elderly and disabled?

Hmmm...subsidize warehousing unadoptable animals...

What is the population of animals in a 'no-kill' shelter that never find a home?  Are unadoptable?

[WhiskeyGirl]

Kohl Proposing Bill to Extend Farm Credit to Struggling Producers
Wisconsin Ag Connection - 04/20/2010

U.S. Senator Herb Kohl is introducing legislation to ensure that farmers and ranchers will continue to have access to loan guarantees through the USDA's Farm Service Agency. The Milwaukee Democrat says farmers often times are unable to receive a commercial loan because of circumstances beyond their control, like weather-related disasters, sudden market downturns or economic downturns.

The FSA loan guarantee programs contains a limitation on the number of years a borrower is eligible to receive a loan guarantee. The Food, Conservation and Energy Act of 2008 waives implementation of this term limitation. Kohl's bill would extend the waiver for another two years in order to allow farmers to access loan guarantees that help cover operating expenses.

"In many of our rural communities, access to credit has become increasingly difficult, especially for farmers," Kohl said. "Even those who were eligible for commercial credit just last year are not eligible for commercial loans without government guarantees today. These loan guarantees are critical to keep farms in business as they weather a rough agriculture economy."

The FSA estimates that more than 4,100 farmers and ranchers will become ineligible for loan guarantees if the waiver is allowed to expire at the end of the year, and an additional 2,300 will become ineligible over the next two years.

A recent survey of agricultural banks in the Midwest note that lenders are more likely to limit credit to farmers this year because of the continued recession and lower commodity prices.

http://www.wisconsinagconnection.com/story-state.php?Id=455&yr=2010

Isn't there a special direct loan for farmers?  To help them stay in business?

Or, are the loans just for special interests?