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Too Many Are Still Paying Full Mortgages

From an outraged Associated Press:

Watchdog: Obama foreclosure plan leaves many out

By Daniel Wagner And Alan Zibel, AP Business Writers

April 14, 2010

WASHINGTON – A watchdog panel overseeing the financial bailouts says the Obama administration’s flagship mortgage aid program lags well behind the foreclosure crisis and leaves too many families out.

The Congressional Oversight Panel says in a report released Wednesday that the administration projects only one million families will end up with lower monthly payments as a result of the program. The report says six million families are more than two months behind with their payments, and 200,000 more families receive foreclosure notices each month.

Gosh, only “one million”? One in six?

And all it takes to quality is to be two months behind in your payments? Where do we sign up?

A year and a half after launching the program, "Treasury is still fighting to get its foreclosure programs off the ground," Elizabeth Warren, who heads the independent panel set up by Congress, told reporters Tuesday.

Ever notice that the only time our watchdog media ever criticizes the government for its inefficiency is when they aren’t giving away our money fast enough?

Warren warned that borrowers who have their monthly payments lowered as a result of the program still could lose their homes because the payments remain high and many Americans are facing new financial strains.

"Re-default signals the single worst form of failure" by the Treasury Department, said Warren, who is a professor at Harvard Law School. "Billions of taxpayer dollars will be spent and families will nonetheless lose their homes."

Luckily, we have a Harvard Law school professor to provide oversight on these evil bankers, who obviously don’t know what they’re doing – or don’t care.

You wouldn’t want someone with a business background in that position. They might get confused by mundane details, such as the laws of economics.

The main program gives money to mortgage investors and collection companies that reduce borrowers’ monthly payments.

Treasury highlighted the panel’s finding that the administration has continued adjusting and expanding the program as the crisis deepens.

"We strongly agree with the (panel’s) assessment that foreclosures are at an unacceptable high rate, which is why this program has been designed to prevent avoidable foreclosures," Treasury spokeswoman Meg Reilly said in a statement. She said the program was not designed to prevent every foreclosure, and "we cannot help those who simply bought a home they could not afford."

Really? Since when? We somehow got the impression that a lot of people who bought houses they couldn’t afford are being “helped.”

Exactly what provisions are in this program to keep such people from receiving ‘modifications’?

The report comes a day after top banking industry executives expressed skepticism about a new plan designed to help troubled borrowers by forgiving a portion of their debt.

Many homeowners aren’t satisfied. After the hearing was over, dozens of activists from the Boston-based Neighborhood Assistance Corp. of America chased Lowman through the marble-floored hallways of the Rayburn House Office Building, pressing him to do more to help troubled homeowners.

He did not respond to their requests for a meeting and eventually left the building with the assistance of police

Welcome to the Third World, Mr. Lowman.

Of course AP did not bother to identify these heroic “activists.” But the Neighborhood Assistance Corp. of America are rivals to ACORN in the bank shakedown racket.

From Discover The Networks:

Neighborhood Assistance Corporation of America

Seeks to make home mortgages available to people whose incomes or credit histories would normally render them ineligible for such loans
Uses aggressive tactics to pressures other lenders to make loans even to extremely high-risk applicants
Portrays as racists those lenders who prefer not to make high-risk loans
Depicts the mortgage industry generally as a haven for “predatory lenders” who are guilty of “manipulative” and deceptive “schemes” that result in the “exploitation of working people”

In other words, the banks are ‘damned if they do, damned if they don’t’ lend.

Founded in 1988, the Neighborhood Assistance Corporation of America (NACA) is a nonprofit, community-advocacy and home-ownership organization whose mission is to make home mortgages available to people whose incomes or credit histories would normally render them ineligible for such loans

NACA pressures other lenders to dispense with such precautions and to make loans even to extremely high-risk applicants, portraying as racists those lenders who prefer not to make such loans. The organization depicts the mortgage industry generally as a haven for “predatory lenders” who are guilty of “manipulative” and deceptive “schemes” that result, inevitably, in the “exploitation of working people.” NACA founder Bruce Marks puts it this way: “We believe all banks are evil — out to maximize profits at the expense of working people.”

To rectify this alleged state of affairs, Marks — a self-described “banking terrorist” — and his organization aggressively “challeng[e] the heavyweights of the predatory lending industry” with a diverse arsenal of highly confrontational tactics. As the Capital Research Center reports, these tactics “typically extrac[t] self-serving concessions from banks, [and force] them to provide [NACA] with funds that it then uses to make mortgage loans to low income borrowers. NACA rolls the fees it earns servicing these loans back into its campaign of bullying banks.” …

So much for the Treasury’s claim that these mortgage ‘modifications’ aren’t going to people who bought more house than they could afford in the first place.

This article was posted by Steve on Wednesday, April 14th, 2010. Comments are currently closed.

5 Responses to “Too Many Are Still Paying Full Mortgages”

  1. proreason says:

    There wouldn’t be any foreclosures at all if the loan balances were all reduced to zero, would there?

    And we wouldn’t have to fester about the outrageous profits those evil mortgage bankers make either.

    And hey, why do I have to pay an outrageous amount for my pornography either?

    Where is our benevolent government when you really need it.

  2. GetBackJack says:

    Eff it.

    I’m moving to Pluto.

  3. Right of the People says:

    “To rectify this alleged state of affairs, Marks — a self-described “banking terrorist” — and his organization aggressively “challeng[e] the heavyweights of the predatory lending industry” with a diverse arsenal of highly confrontational tactics.”

    Yeah, like the banks drug these people off the street and made them take a loan.

    I’ve been discussing this with the better half and I think we’re going to sell the old homestead and rent from now on. I’m tired of shoveling snow and cutting grass and all the other stuff that goes with home ownership. The way things are going, there won’t be any benefit to owning a home anymore.

  4. AcornsRNutz says:

    “Billions of taxpayer dollars will be spent and families will nonetheless lose their homes.”

    Here is a classic example of the alinsky style. Are we to take away that the answer to this is more money from the taxpayers? Brilliant.

  5. TwilightZoned says:

    “A year and a half after launching the program, “Treasury is still fighting to get its foreclosure programs off the ground,”…”

    More proof of government competency, not.


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