Skip to comments.Fannie/Freddie Update: Geithner Offers FHFA Director DeMarco an “Offer He Can’t Refuse”
Posted on 03/29/2012 5:19:23 AM PDT by whitedog57
Treasury Secretary Timothy Geither testified in the Senate Appropriations Committee yesterday on trying to coerce FHFA Acting Director Ed DeMarco to perform principal write downs on mortgages EVEN IF TAXPAYERS LOSE! Geithner said Treasury would pay a maximum of 63 cents for each dollar of loan forgiveness as part of its expanded Home Affordable Modification Program.
Secretary Geithner agreed with something I said in a recent article. He said he was sure the economics would work in favor of debt reductions in some circumstances. But for most borrowers, it is just a drain of taxpayer wealth.
DeMarco is responsible for getting Fannie Mae and Freddie Mac back on their feet AND protect taxpayers from further losses Will DeMarco change his mind and allow Treasury (the taxpayer) pick up the tab for losses generated by the loan forgiveness by Fannie Mae and Freddie Mac (the taxpayers) for 63 cents on the dollar.
So taxpayers lose if Geithner makes DeMarco an offer he cant refuse. Actually, DeMarco can refuse the sweetener, but the pressure is mounting from the Obama Administration to do something costly to taxpayers.
To be sure, a number of people have been screeching for principal forgiveness to help revitalize the housing market and economy. Once again, this is the BIG GOVERNMENT solution that led to the housing bubble and financial crisis in the first place (Federal encouragement of home ownership via Clintons National Homeownership Strategy NHSDream, tax incentives and lobbying to lower down payments. So now the Central Planners have another idea: forgive the debt! At taxpayer expense.
I encourage FHFA Director DeMarco to refuse Geithners offer. Taxpayers cant afford any more offers.
I have met Secretary Geithner and he seems like a nice person. DeMarco doesnt have to worry about a horse head in his bed.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
I'm sorry, but I think the TARP was a curse that Obama has taken full advantage of, and there is no end in sight. Unspent money looks to the govt. (not just Dems) like a steak looks to a hungry dog.
Sorry??? Bush/Paulson wanted a HUGE blank check and Speaker Pelosi gave it to him knowing Obama would take it over; and that is what Obama got.
Insult to injury : Obama spends that same money that was authorized under TARP and at the same time claims it is part of the deficit he inherited. Way to go Republicans!
Bush has disappeared, but his legacy lives on.
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