Subprime Lenders Getting U.S. Subsidies, Report Says

Washington Post ^ | August 26, 2009 | Renae Merle

[Zakeet]

Many of the lenders eligible to receive billions of dollars from the government's massive foreclosure prevention program helped fuel the housing crisis by issuing risky subprime loans, according to a report to be issued Wednesday by the Center for Public Integrity.

Under the $75 billion program, called Making Home Affordable, lenders are eligible for taxpayer subsidies to lower the mortgage payments of distressed borrowers. Of the top 25 participants in the program, at least 21 specialized in servicing or originating subprime loans, according to the center, a nonprofit investigative reporting group funded largely by charitable foundations.

Much "of this money is going directly to the same financial institutions that helped create the sub-prime mortgage mess in the first place," Bill Buzenberg, executive director of the center, said in a statement.

For example, J.P. Morgan Chase, Wells Fargo and Countrywide, which has been bought by Bank of America, are eligible to receive billions of dollars under the program, according to the report.

The report comes as the Obama administration is prodding lenders to do more to help borrowers. Less than 10 percent of delinquent borrowers eligible for assistance through Make Home Affordable have received help, according to Treasury Department estimates released this month. The administration is aiming to more than double the number of borrowers helped under the program to 500,000 by Nov. 1.

[Zakeet]

Obamanomics - Tax it away from the middle class and give it to the poor; steal it away from the poor and give it to the rich; tax it away from the rich and make everyone poor.

[HereInTheHeartland]

“Much “of this money is going directly to the same financial institutions that helped create the sub-prime mortgage mess in the first place,” “

It’s actually going to the borrowers, through those lenders.

And of course it would be going through those lenders as they are the ones holding the loans!

[stephenjohnbanker]

“For example, J.P. Morgan Chase, Wells Fargo and Countrywide, which has been bought by Bank of America, are eligible to receive billions of dollars under the program, according to the report.”

In 2006, a Countrywide broker showed me a mortgage he got done:

Purchase $900,000.00

Down payment $100,000.00

New Loan $800,000.00

Borrower’s credit report:

9 collection accounts

2 current accounts

[madison10]

They learned nothing.

[mojitojoe]

tax it away from the rich and make everyone poor.
______________
That won’t work. The rich will take it elsewhere. The USA isn’t the only game in town.