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SOME NEEDED MORTGAGE REFORMS
12/30/09
Although reforms are needed in many economic, political, and social aspects of our life, some relatively easy to implement are:
*Banks should not be allowed to sell loan packages neither individually nor collectively. Banks’ role should be reinforced as providers of financial services, and not repackaging and selling loans as traders, which will benefit banks enormously. Buyers should only be allowed to buy bank stocks. The ownership of loans should be tied to the ownership of banks. When a loan is sold to another party, the history of loan payments, escrow analysis, the actual escrow balance, etc become blurred and obscure, if not unavailable, which does not favor the borrower who either can’t find out the differences or is compelled to shuttle inquiries at the old bank and the new with unsatisfactory outcomes. The borrower gets fielded on a regular basis.
*Provision of mortgage loan should obligate the banks to protect the loan amount and the borrowers all together. Why, because before the loan agreement is signed, banks run the credit check, income history check, background check, expenditures check, appraises the property value, receives application fee and the down payment, control property taxes and insurance, etc. All such expenditures are for the borrower’s account. The responsibility and the outcome of this joint venture should be equally shared because it is a partnership. Before entering in to this joint venture, the banks have made sure that the partnership is secure and worth the investment and risk involved, besides having lien options on the subject property and other assets of the borrower. Money lender has the power to destroy borrower’s credit and eventually the borrower. For some reasons, the borrower becomes subordinate to this agreement which is always in favor of the lender. The borrower remains on the defensive for the life of the loan. The responsibility and the outcome should be at least equally shared because it is a partnership. If the property values drop due to economic slowdown then the total loan amount should be dropped thereby allowing the borrower to sell the property at a lower price. On the other hand, the mortgage payments should be reduced to accommodate borrowers who are unable to make payments and are closer to giving up the property ownership.
*Banks don’t have to foreclose the properties, because they don’t gain anything in return. In fact, Banks incur more expenditure and headache in exercising the foreclosure option because they can’t sell the property at a higher or desired price level than the market allows. Under bank ownership properties deteriorate and drop in value rapidly with an ongoing burden of city code violations, vandalism, property taxes and insurance. Banks need convincing that by reducing the monthly mortgage payments and allowing the borrower to continue ownership is to their benefit. Most banks go on an ego trip and demonstrate inflexibility even when the borrower shows a little weakness, and more so when a request for refinancing or lowering the monthly payments is made. Also, banks find it difficult to execute loan-modification because they have sold the loan to a third party, which should not be allowed. The loan originating bank must remain responsible for the life of the loan along with the commitment of related joint venture/partnership.
*Banks should not be allowed to forced place insurance on the property. In some States, insurance companies have denied property insurance or cancelled it for one reason or another, in which case the bank avails the lucrative opportunity to offer coverage at about 500% higher rate. This insurance product is not available in the marketplace to the borrowers / property owners and has no competition, which is an unfair business practice in a free enterprise and competitive marketplace environment. Here the banks have chosen to place their exclusive insurance at an exorbitant rate to protect their loan amount on the borrower’s property at borrower’s expense. This is an unfair business practice and corrective reforms must be placed.
Tax deductions are a great incentive to buy a house and forthe housing market, and most of us fall in to this category of decision making. It may be the root cause of most evils associated with the real estate market financials. Instituting a flat tax, say at 10%, with no deductions may be able to solve most of the real estate related financial problems.
Warmest regards,
Prem Bhandari
BRINGING US TROOPS BACK FROM IRAQ AND AFGHANISTAN
10/07/09
Dear Media Friends,
Should President Obama decide to end the wars in Iraq and Afghanistan
immediately and bring back at least 90% of the troops to join their
respective families and loved ones, more than a few benefits would
emerge from his bold and powerful action, and Millions of dollars will be
saved on daily basis. We need this money in the U.S.
Tired and exhausted military will get well deserved respite. We need to
revitalize and re-equip our military for the future wars which may prove
to be much more challenging, and which may occur sooner than expected.
(Former President George W. Bush did make a wise attempt to exit Iraq by
declaring 'mission accomplished' which if materialized would have saved
thousands of lives and at least $900 Billion which could have been used
for various needful purposes at home).
Danger associated with these wars is a 'distant' one, and no attack is
anticipated in the immediate future and, therefore, avoidable loss of
life and expenditures are not essential. Besides, these wars are
depriving us of many other essentials that need focus and funding 'now'
in the United States. Pulling out will adversely affect certain war
related businesses and jobs, but the benefits will outweigh the losses
many times over.
Affordable Universal or National healthcare plan must be passed because
1) adequate healthcare should be a given thing in America and no one
should be without it, 2) future terrorist or military attacks on the
U.S. may not be the ones we have seen before; they could be bio-chemical
or something else. It takes a few months for the labs to develop an
antidote for a yearly flu virus, which may not be workable when several
viruses, each of different kind, are introduced in various parts of the
country simultaneously, thereby causing very challenging conditions, 3)
it provides a solid platform for small and big business to develop and
thrive, which produce jobs in America. Healthcare to all Americans can
be provided at half the cost of current expenditures.
Without a healthy and thriving economy, it will be difficult to fund
anything, even defense and homeland security. Depressed economy is the
'immediate' danger which needs to be dealt with.
Without revitalizing the housing market jobs won't be materialized in
the numbers that make the economy healthy. Banks have been helped, but
not the homeowners and homebuyers. Short sales and foreclosures are
killing the real estate market but helping just a few, which calls for
new laws for property appraisals, realtors' commissions, and closing
attorneys' fees, codes of conduct, etc. An individual's option to sell,
by choice or difficult circumstances, should not negatively affect
neighbor's property……..Banks are here to make money, and shortage of
business is leading some to develop innovative ways to make
money…….Closing attorneys should be discouraged to own realty
companies…..Property/hazard insurance requires much more competition
than there is.
Pulled funding from Iraq and Afghanistan wars should be applied to
reducing deficit and national debt. Industrial base should be revived
and expanded Export related industries and enterprises should be
promoted Position and status of US Dollar must be strengthened in the
international marketplace, so that it remains the most powerful medium
of exchange for a long time to come.
Warmest regards,
Prem Bhandari
www.PremBhandari.com
CONSIDERATIONS FOR NATIONAL HEALTHCARE PLAN
9/02/09
Dear Friends,
Why low cost healthcare is crucially important for America? Healthy Americans are better workers with higher output, businesses can afford to hire them, jobs are more likely to remain in the U.S rather outsourced overseas, important for national security considering enemy’s options of using biological weapons, important for the small businesses who create most of nation’s new jobs, etc, etc.
U.S healthcare can be provided at almost half the current cost of $24,000 Billion
You may be interested to know the following current estimates:
v $2.4 Trillion ($24,000 Billion) will be spent on healthcare in 2009, or $8,160 per U.S resident, based on the total of about 294,000,000.
v Healthcare spending has been rising at 2.4% faster than the GDP since 1970
v Center for Medicare and Medicaid projects healthcare spending will exceed $43,000 Billion, or $13,100 per U.S resident, by the year 2018
v In 2009 healthcare expenditures are estimated at 17.6% of the GDP, which will exceed by 2018 to 20.3% of the GDP.
v About 10% people account for 63% of spending on healthcare services, 21% of the spending is only for 1% of the population. You may be in this category.
v More than 50% of the U.S population gets only 3% of the total healthcare spending. You may be among them.
v Private healthcare expenditures account for 54% of the healthcare recipients, while Public sector expenditures account for 46% of the recipients
v Center for Medicare and Medicaid projects that by 2018, Public sector share of healthcare expenditures will be 51% as compared to 49% of the national healthcare expenditures by the Private sector. Private sector’s participation will decline due to the aging population
v Recent interview on the TV network revealed that Europeans and Canadians incur 4% on healthcare administrative costs, as compared to 25% in the U.S
Obviously, the cost of healthcare in America has been consistently rising, and the major portion of national healthcare expenditure is spent on a very small segment of U.S population, while only 3% of the total is spent on half of the U.S. population.
President Obama may wish to present various cost models to Americans, describing the reduced burden of monthly healthcare insurance premium on a single, single mom, family of 3, etc under two options:
(2) Federally funded healthcare option in the competitive marketplace, or
(1) National Healthcare Plan with single payer
In option (2) the healthcare premiums will gradually drop over an extended period of time, while in option (1) the healthcare premiums will drop immediately. If the U.S residents and the congress want to see healthcare costs to drop, they have got to understand it and want it. People who can afford to pay between 10% to 30% of their total income toward healthcare, may not care to understand these options. Lack of adequate healthcare can bankrupt any one, if they want to live. A rough sketch can show how the healthcare cost can be reduced immediately:
Current healthcare cost $24000 Billion
Less 20% reduction in administrative costs $4800 Billion
Less 20% waste, fraud, unnecessary
medical procedures, medication, etc $4800 Billion
Less 10% of excessive profits $2400 Billion
Rough estimate of the total cost $12000 Billion
**There are huge economies to be made in the redesigning of cost distribution model which is currently disproportionate, resulting in further cost savings.
With the cost of around $12000 Billion, every person living in the United States can
Receive healthcare with no complicated paperwork, co-payments, special enrollments in various programs, and spending a good portion of their time and money during the remainder of life on medical visits, etc. It will also relieve families from the enormous financial and emotional stress. Small businesses will welcome it.
There are plenty of savings to be gained by eliminating abuse, waste and fraud, reducing administrative costs, IT costs, bringing lifestyle changes, proper distribution of expenditures to reach all sectors of society, etc., etc and providing needed healthcare to each and every U.S resident.
Warmest regards,
Prem Bhandari
www.PremBhandari.com
7/20/09
KEEP YOUR PREFERRED HEALTHCARE AND LET THE POOR LOVED-ONES HAVE IT TOO
Universal healthcare will enable an average American to obtain healthcare insurance at an affordable cost, provide much needed real time competition in the healthcare marketplace, will reduce or eliminate racial or ethnic bias, improve the quality of healthcare, reduce waste, eliminate the currently inefficient providers, improve the economy, provide jobs, provide much more homeland security than now, stimulate new medical research, create new entrepreneurs, and improve the bottom line of most private healthcare providers. The beneficiaries of Universal Healthcare will be the Americans of all political affiliations, ethnicities, faiths, social classes, economic levels, health conditions, ages, and professions etc.
American healthcare system has been acknowledged by many to be the best in the world. In fact, only a portion of it is the best in the world. This best portion is enjoyed by only a segment of our population which is in the highest income bracket and therefore can afford its higher premiums. Average American cannot afford it, and poor people cannot afford any. Universal healthcare is the best healthcare reform for American healthcare system. Let a federally instituted plan enter the marketplace and create an option for the less affluent and poor. The outcome will be enormously beneficial to all Americans.
The current estimated cost of healthcare is about $8,000 per year per person when about 47 million are without any insurance because they cannot afford it, and there are millions more who find it hard to pay at the current prices. In about7 years this cost under the current system can rise to $12,000 (inflation adjusted) which will make it unaffordable for more people than today. Those who can afford it will find it much more burdensome than now. The cost will keep on rising unless a healthcare reform is instituted preferably in the form of universal healthcare which will create a cheaper and affordable option for the poor, and the small businesses which generates about 75% of all new jobs. In 10 years time, the teenagers of today may find it almost impossible to afford healthcare insurance under the current system.
People with no healthcare or minimum healthcare or with co-pay will tend to ignore the symptoms of some illnesses and postpone visiting a medical facility for fear of expense involved. Infections and viruses can spread and can get out of hand, resulting in loss of wages, productivity, etc. Healthcare for everyone has always been very important for any nation, and it is becoming more so in the modern times when travel, pollution, chemicals, toxins, etc. are a part of life.
Today, it is more important to have universal healthcare than ever before, because tomorrow may bring an awakening should some act of bio-terrorism takes place on our soil, which can cause a significant devastation involving a large number of people in matter of hours, and a national calamity in a matter of days. America cannot afford to have someone infected with a virus not getting immediate medical attention. It’s an issue of national security and wellbeing of all Americans. Universal healthcare will create an atmosphere of responsibility and relief beside affordability.
Those who have a satisfactory healthcare should maintain it, and allow their less affluent and poor loved ones and fellow Americans to have a choice as well. This can only be achieved through a universal healthcare system, step by step. There is enough money in the system, but it requires redistribution because the medical community seems to maintain a large number of patients for routine visits, tests, prescriptions, etc. for recurring revenues. Instead of expediting the healing process, patients seem to get captivated for one reason or another. Some patients have become permanent clients of the medical community and the associated prescriptions and routines. This creates imbalance in the total cost; money and efforts being spent where not needed and denied where needed, that is, beside the enormous waste. It is possible that 25% to 30% of the money currently being spent in the healthcare can be saved almost easily. Here is a potential for which an incentive needs to be provided through an opportunity. Additional savings can be achieved through the promotion of self-health management and changes in the lifestyles of most, which are going to be the most prominent issues of tomorrow.
Let billions of dollars get donated to the lawmakers by the lobbyists, competition from federally sponsored healthcare system will create a unique scenario where competitive pricing and healthcare quality will matter the most. This will help average Americans to obtain healthcare, improve the quality of care currently available in the marketplace, reduce or eliminate racial or ethnic bias, eliminate currently inefficient healthcare providers, and improve the bottom line of efficient providers.
Speak, call, or write to your congressman or congresswoman and ask for Universal Healthcare for all Americans.
Warmest regards,
Prem Bhandari
HEALTHCARE FOR EVERYONE
6/20/09
Dear Media Friends,
Being the richest and the most powerful country in the world, the least the United States can offer to its inhabitants is guaranteed healthcare for every one. No one should be found having no healthcare, because it is in the national interest to have healthy and well taken care of population. Besides, it is extremely important for national security reasons. Just visualize the scenario when an uninsured with a dangerous viral infection remains untreated and brings down a good portion of our population………….Healthcare is a national and human issue of great importance, and it should not be perceived as a commercial or political one.
Qualitatively, our healthcare system may be the best in the world, but that quality refers to only a certain segment of our population. Our population, like any other, consists of many age groups, income levels, disability levels, regions, etc and all of the people falling under these categories do not enjoy the same quality of healthcare as the upper crust of our society.
Our healthcare system is based on competitive marketplace system which is excellent for innovation, breakthroughs, and research and development, with a complete focus on revenue generating endeavors. Statistics will show that overtime the number of corporations servicing the provision of healthcare tend to shrink while the corporate size
increases. Corporations tend to drift toward controlling the marketplace by eliminating the competition either by acquisition or ruthlessness price tactics. They are not in business for humanitarian reasons, but for profit, and profit only. This methodology serves the corporations and their employees, but does not serve small businesses and the majority of Americans.
Millions of Americans are either uninsured or under insured, and millions more find it hard to pay for their healthcare. U.S. Government should start offering healthcare insurance, under the national healthcare plan, and accommodating the uninsured and underinsured Americans right away. Also, their entry in to the marketplace will provide a real time competition to the established healthcare providers. A lot of waste will be eliminated.
The initial stages of national healthcare plan will provide a real taste of competition in the marketplace, and will also create quality grades. Overall healthcare costs will drop, premiums will drop, price of prescriptions, prices of brand names and generics will drop, and the cost of long term care, hospices, homecare, etc will drop. This competition will encourage new facilities providing a variety of healthcare services at an affordable price range will emerge. It will also accommodate the small and big businesses to provide healthcare to their employees at an affordable cost upon which the viability of their staying in business depends. We should remind ourselves that millions of baby boomers are about to enter as Medicare recipients, and will be looking for affordable supplemental insurance, when the total number of healthcare insurance contributors will be decreasing because of the higher number of aging population. More uninsured Americans will join the current number of uninsured individuals, and the insurance premiums will increase. It is an ideal time to launch the national healthcare plan. There is plenty of money already in circulation within the current healthcare system, which may need to be re-allocated. The national healthcare package will serve two purposes: 1) universal healthcare, 2) national security.
An absolutely simple healthcare access process will be a winner in America. Creative and complicated healthcare plans do not work and serve satisfactorily. All the possible options should be in the electronic database where all the options, choices, changes, and flexibility should exist. All the healthcare related choices, options and changes regarding a health condition should be available to all recipients upon their contact or arrival at a medical facility, which will be most appreciated by almost all Americans.
Reciprocally, each individual will become responsible to seek medical attention immediately upon developing symptoms of viral infections, poisons, toxicity, radiation, etc which will serve the individual, fellow Americans, and the security of our nation.
A national health plan offering universal healthcare to all Americans will be an ideal step to take; even though the exercise will not be without pains during the initial stages, the overall benefits would be priceless. Guarantee of total healthcare to all Americans should be a given privilege which when instituted will be appreciated by the current and future generations.
Warmest regards,
Prem Bhandari
www.PremBhandari.com
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