11 million Americans are underwater in their mortgages. That’s roughly 1 in 4 homeowners. How about another government bailout to help?
The Obama administration is pulling a lever or two so this nasty problem should be fixed just in time for the election, right? Didn’t they try something like this before or did that just not work last time?
There are several reasons why we believe it won’t work this time either. The Republicans will be blocking it. Then there’s that persnickety problem of exactly where will the money be coming from.
Here’s the main article from Bloomberg, plus several more interesting takes we’ve found across the net.
Spencer Bachus, R-Ala., chairman of the House Financial Services Committee, said the refinancing plan proposes “to get out of the hole we’re in by digging deeper.” “He wants lenders to make more of the same risky loans …
Publish Date: 02/01/2012 17:52
By Ronald D. Orol , MarketWatch WASHINGTON (MarketWatch) — Treasury Secretary Tim Geithner on Thursday discussed some of his goals for financial reform in 2012, including a plan to provide more details in the spring about the … He said the Federal Housing Finance Agency, Fannie and Freddie’s regulator, is “still open to examining the economic case” for reducing the principal owed by borrowers who have mortgages owned by the two mortgage giants.
Publish Date: 02/02/2012 16:33
- Why Fannie and Freddie are Hesitating to Help Homeowners (propublica.org)
- Obama wants Congress to act on expanded home refinance plan (usatoday.com)