Regulator torpedoes Obama mortgage plan

Regulator torpedoes Obama mortgage plan

President Obama has been attempting to get Fannie and Freddie to use some compassion and "forgive" some mortgage debt for homeowners who have been cracked by the financial "crisis".

But Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA) say No Way José !!

Too much taxpayer money involved I think.

The "free pass" gifts have been cleverly called "principal reduction".


The Raw Story -- July 31, 2012

WASHINGTON — The US regulator in charge of state-backed mortgage firms Fannie Mae and Freddie Mac on Tuesday rejected an Obama administration plan to ease the housing crisis by forgiving some outstanding home loans.

Responding to pressure from President Barack Obama’s White House to use debt forgiveness to help heal the depressed housing market, Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA), squarely objected.

DeMarco said the independent federal agency, in charge of taxpayer-supported Fannie and Freddie after a 2008 government rescue, will not participate fully in the program aimed at preventing foreclosures.

Obama may not actually care either way.

He loses votes either way.

Regulator torpedoes Obama mortgage plan

As much as I care for my fellow American, I'm glad.

Why should I live in a modest house while you CHOSE to live in a mansion out of your means? You can't afford it now? Oh woes you.

I'm glad these money grabbers are being kicked to the curb. No matter if its on wall street or main street. If you can't afford it, why did you buy it?

If we bail the suits out, its game over for America.

Wars, bailouts and welfare. We cannot create money fast enough for this lie.

reply to post by xuenchen


Why would they participate? They make more money by selling the house a second time and starting over the process from the begining. The banks make most of their money early on when most of the monthly payments are going to interest.

Originally posted by litterbaux
As much as I care for my fellow American, I'm glad.

Why should I live in a modest house while you CHOSE to live in a mansion out of your means? You can't afford it now? Oh woes you.

I'm glad these money grabbers are being kicked to the curb. No matter if its on wall street or main street. If you can't afford it, why did you buy it?

If we bail the suits out, its game over for America.

Wars, bailouts and welfare. We cannot create money fast enough for this lie.

I agree, we bailed out Wall Street, but I think it's better people lose their homes, become
homeless and go on welfare.

If you lost your job, at least Wall Street got bailed out, you are probably lazy anyways,
you should have foreseen the bankers crashing the economy. There is no room for
circumstance anyways, boot to the neck, people need to be punished because punitive action
is best for everyone!

The whole reason behind the idea is to reduce the overall cost of froreclosure. The inventory of foreclosed homes is continuing to drag the housing industry down. Forclosed homes are a blight in many areas and dragging the value of neighboring properties down. Why go to the huge legal expense of going through the foreclosure process, end up with properties you have to pay to maintain (or worse yet are simply let-go) and then get a fraction of the original mortgage balance at auction? It makes no economic sense. From the very beginning they should have worked to keep people in their homes.

This whole 'why should I help someone keep a home that's better than mine' is bald-faced BS. At the very start you had the talking-heads saying that it was about red necks buying homes they knew they couldn't afford. We know, based on the facts, that that is utterly untrue. The problems that got the vast majority of people in this situation to begin with was CAUSED by the lenders themselves and their fast-and-loose Wall Street shenanigans. Besides the fact that this program makes good economic sense there is an ethical/moral angle as well. Let the banks take a frigging hit for once.