Skip to comments.Regulator rejects plan from White House to forgive mortgage debt
Posted on 07/31/2012 1:04:29 PM PDT by jazusamo
A top housing regulator on Tuesday spurned a proposal from President Obama and Democrats to let homeowners write down the principal on their mortgages.
Edward DeMarco, the acting director of the federal agency that oversees Fannie Mae and Freddie Mac, said the risk to taxpayers from the mortgage aid would far outweigh the benefits.
We concluded the potential benefit was too small and uncertain relative to unknown costs and risks, DeMarco, the head of the Federal Housing Finance Agency (FHFA), said in a letter to Congress.
DeMarco's move drew a swift rebuke from the Treasury Department, which had pushed FHFA to forgive some mortgage debts in a bid to boost the economy.
I do not believe it is the best decision for the country, Treasury Secretary Timothy Geithner wrote in a letter to DeMarco.
The use of targeted principal reductions by the GSEs would provide much-needed help to a significant number of troubled homeowners.
The housing market has been battling back from a severe downturn, and some housing experts have touted the idea that lowering the principal for some homeowners, especially those who are underwater on their mortgages but current on their payments, would stem the tide of foreclosures and bolter the sector's recovery.
Geithner argued that allow for the reductions would help a minimum of 500,000 homeowners and save Fannie and Freddie upward of $3.6 bililon over other types of loan modifications.
During congressional testimony in recent months, DeMarco, to the frustration of many House and Senate lawmakers, routinely disagreed that reducing the principal balance would pay off in the end for the government-controlled entities.
Get ready for the executive order. Rush Limbaugh said several months ago that this was part of Obama’s strategy to buy the election by paying off peoples mortgages.
The government through the many buying and selling of mortgages (what was it? mortgage backed securities?) own most of the mortgages now. What they’re trying to do is buy the rest of them. What most do not realize is if your mortgage is already owned by Fannie Mae and Freddie Mac you don’t qualify for this so called bail out.
The slimes also want to eliminate interest write offs for many mortgaged homeowners. Remember it was the “evil” banks who made money off the poor? It’s okay when government does it. Problem is, they pay each other millions in bonuses while at FM/FM and move on to the next cash cow! Thievery at its lowest and highest levels.
Pray for America.
how do I get myself one of those free Obama mortgages??
HEY, PRESIDENT DILHOLE! WHERE’S MY FREE SH#$@????
I hope that Edward DeMarco has adequate protection...and I hope that he has backup employment options...Obama and the Chicago Mafia will not take kindly to being stymied by this guy.
It would destroy what little structural integrity is left in the American economy.
“How many of you people want to pay for your neighbor’s mortgage, that has an extra bathroom, and can’t pay their bills? ... Mr. Obama, are you listening?”
- Rick Santelli, Feb 19, 2009, the day America began to fight back.
Obama: "Because it's the right thing to do!"
"A President who abuses his executive order authority undermines the constitutional separation of powers and may even violate it. History will show that President Clinton abused his authority in a variety of ways and that his disrespect for the rule of law was unprecedented."
It was "unprecedented" until Obama arrived to stink up the White House.
Writedowns work even less well for mortgages than for governments. Foreclose em. Get it done. Start fresh.
So now they have turned TARP, the supposed one-time massive theft of borrowed money, into a permanent slush fund to be used by Obama for pandering, pay-offs and vote buying? This must be the Obama Stash many of his true believers Obama will use to pay their rent, fuel their cars and buy them the newest Jordan Nikes.
Thanks George Bush - we know you thought you were doing the right thing with TARP - like with Homeland Security. But you should have known better.
We all knew what happens when you create an opportunity for democrats to get their hands on more power and a new method for scamming government money to fund their own agendas.
Every Reoublican should be howling like hell from now till Nov 6th about this attempted theft!
“It would destroy what little structural integrity is left in the American economy.”
It is the perfect pre election gift to 25% of mortgage holders who are underwater. It will bring down the economy and completely bankrupt the government which will have to borrow to pay for the writedowns. If Obama loses, Romney inherits the collapsed economy and will be blamed by the media and democrats. If Obama wins the election, and the economy collapses as a result of this move, Obama declares martial law and becomes a dictator.
We’ve deteriorated to the point where 50% of the population expects to be taken care of and could care less about the Constitution and rule of law.. We are past the point of no return. It is just a matter of watching how the end game plays out.
If Obama is re-elected, pretty soon, all homes will be worth less than their loan value. So is Obama going to forgive ALL our mortgages? He is such a dufus.