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Biden: Courts Should Adjust Mortgages

From the Vice Presidential debate transcript:

IFILL: Sen. Biden, you voted for this bankruptcy bill. Sen. Obama voted against it. Some people have said that mortgage- holders really paid the price.

BIDEN: Well, mortgage-holders didn’t pay the price. Only 10 percent of the people who are — have been affected by this whole switch from Chapter 7 to Chapter 13 — it gets complicated.

But the point of this — Barack Obama saw the glass as half- empty. I saw it as half-full. We disagreed on that, and 85 senators voted one way, and 15 voted the other way.

But here’s the deal. Barack Obama pointed out two years ago that there was a subprime mortgage crisis and wrote to the secretary of Treasury. And he said, “You’d better get on the stick here. You’d better look at it.”

John McCain said as early as last December, quote — I’m paraphrasing — “I’m surprised about this subprime mortgage crisis,” number one.

Number two, with regard to bankruptcy now, Gwen, what we should be doing now — and Barack Obama and I support it — we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you’re paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe.

That would keep people in their homes, actually help banks by keeping it from going under. But John McCain, as I understand it — I’m not sure of this, but I believe John McCain and the governor don’t support that.

There are ways to help people now. And there — ways that we’re offering are not being supported by — by the Bush administration nor do I believe by John McCain and Gov. Palin.

What crazy and dangerous nonsense.

Also, while we are at it, when did Mr. Obama ever warn about a subprime mortgage crisis — let alone two years ago?

Obama has championed handing out loans to people who shouldn’t be getting them all of his career.

“Just words.”

And, as we have previously noted, this is selfsame bravo who pushed through a bill to please his major donors that has exacerbated the mortgage foreclosure crises, even according to ABC News:

Should Biden Share Blame for Foreclosure Crisis?

Experts: Many Americans Lost Homes Due to a Bill Championed by Biden

By JUSTIN ROOD

August 28, 2008—Experts say hundreds of thousands of Americans may have lost their homes due to a bill championed by Sen. Joseph Biden, D-Del., Barack Obama’s vice-presidential running mate.

At least two studies have concluded that the United States’ foreclosure crisis was exacerbated by a 2005 law that overhauled the nation’s bankruptcy law. That conclusion is echoed by other experts, although the banking and credit industry disputes it.

Congressional Republicans drove the effort to pass the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. But Biden who has enjoyed hundreds of thousands of dollars in campaign donations from credit industry executives endorsed the measure early on and worked to gather Democratic support for it.

Biden’s early and vocal support was “essential” to the bill’s passage, said Travis Plunkett of the Washington D.C.-based advocacy group Consumer Federation, which opposed the measure. Biden “went out of his way to undermine criticism of the legislation,” and his efforts helped convince other Democrats to support the bill.

“Biden was a fairly strong proponent of that bankruptcy bill,” said Philip Corwin, a consultant for the American Bankers Association, which represents banks and lenders. However, Biden was “not in our pocket in any way,” he added.

Biden’s Senate office did not provide comment for this story.

Asked if the Obama/Biden campaign was concerned Biden’s record was a liability when discussing economic security, David Wade, a spokesman for the Obama/Biden campaign, said, “Barack Obama and Joe Biden have real solutions for struggling families in danger of losing their homes because of the Bush economy and abusive lending practices.”

BAPCPA “is directly responsible for the rising foreclosure rate since the end of 2005,” concluded a 2007 study by Credit Suisse. The law “increased foreclosures and the number of homes for sale,” echoed a July 2008 study by U.S. Treasury researcher David Bernstein. That study estimated the law had pushed foreclosures or forced sales on 200,000 homeowners since it went into effect, but noted that was a rough, “back-of-the-envelope” calculation…

The bill was backed by banks and credit card companies including MBNA, which is headquartered in Delaware, Biden’s home state. They wanted the bill because it would make it harder for Americans to use bankruptcy to avoid repaying credit card debt. MBNA executives had been Biden’s single largest source of campaign donations, and MBNA has employed Biden’s son Hunter as a company executive, lobbyist and consultant. The Obama campaign has said Hunter Biden did no work for MBNA on the bankruptcy bill. MBNA has since been bought by Bank of America.

Hypocrite is not a strong enough word to describe Joe Biden.

This article was posted by Steve Gilbert on Friday, October 3rd, 2008. Comments are currently closed.

7 Responses to “Biden: Courts Should Adjust Mortgages”

  1. Colonel1961

    Interest rate and principal? Charming. I just called my mortgage company and asked for $100k off before BHO takes office, otherwise, I’m quitting my ‘job’, getting free health care, and then they can eat the entire principal because Joe and Bro are gonna give me my house for free! It’s all free, baby – it’s all free!

    Obama in ’08, baby! Whoo-hoo!

    p.s. and send over some of that free gubmint cheese, too…

  2. U NO HOO

    As my Dad used to say, “I love that that free gubmint cheese, it binds me up.”

    He loved all bran for breakfast.

    Have to laugh or I’ll cry.

  3. U NO HOO

    “wrote to the secretary of Treasury”

    Could I get a carbon copy please?

  4. wardmama4

    I missed that little gem but I know it’s purpose – to be a new talking point/ad for Master of the Universe – Obamanation.

    After this stupid ‘crisis’ and vote – I am beginning to believe the Keystone Kop ticket is going to win (despite my true belief that 51% of Americans are still fine, upstanding and hard working people).

    Damn them all to hell – I have my absentee ballot – and I can’t mark the President one – I just can’t – even though I’d never mark Obamanation and I know that any of the others aren’t even close. As I said – damn them all to hell.

  5. shel777

    So now the mortgage companies and bankers would never know whether their profits will be guarded, eroded, or taken away altogether. I think the best possible situation is for a person t claim to be a black muslim lesbian female – and all for the cause of votes (and maybe to alleviate the risk of bombs going off), the loan is forgiven, and of course, a nice liberal Jewish (I am Jewish but hardly liberal) lawyer will sure the government, even so.

  6. Colonel1961

    As opposed to a lesbian male? (Sorry, couldn’t help myself.)

  7. 1sttofight

    Hey, I thought I was the only male lesbian in Ala.




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