Regulator Rebuffs Obama on Plan to Ease Housing Debt
Source: New York Times
By BINYAMIN APPELBAUM
Published: July 31, 2012 Comment
WASHINGTON The independent federal agency that administers Fannie Mae and Freddie Mac said once again on Tuesday that it would not let the mortgage finance companies offer debt forgiveness to homeowners, rejecting the entreaties of congressional Democrats and the Obama administration.
The Federal Housing Finance Agency's acting director, Edward J. DeMarco, said that offering debt forgiveness would not make a "meaningful improvement in reducing foreclosures in a cost effective way for taxpayers. The Federal Housing Finance Agency said it had concluded after months of study that debt forgiveness might benefit up to half a million homeowners, but that the costs including the cost to taxpayers outweighed the potential benefits.
I just dont understand why theyre applying this level of caution and scrutiny, said Jared Bernstein, a former economic adviser to Vice President Joseph R. Biden Jr. It strikes me as bad for homeowners, bad for taxpayers and bad for the macroeconomy.
Read more: http://www.nytimes.com/2012/08/01/business/us-agency-bars-fannie-and-freddie-from-reducing-principal.html?hp
Jared Bernstein's right, of course.
99th_Monkey
(19,326 posts)I guess they need something to do to justify their existence.
DJ13
(23,671 posts)They see their sole mission as regulating the continued profits being generated by the banksters, no matter what it does to the overall economy.
flpoljunkie
(26,184 posts)Treasury Secretary Tim Geithner has written him a letter asking today asking him to reconsider.
http://www.treasury.gov/connect/blog/Pages/tfg-letter-demarco.aspx
JDPriestly
(57,936 posts)President Obama chose North Carolina Banking Commissioner Joseph Smith to be DeMarco's successor Nov. 13, 2010, but DeMarco is still expected to play a key role in the agency.
http://www.washingtonpost.com/politics/edward-j-demarco/gIQAK9StKP_topic.html
Republican obstructionist.
burnsei sensei
(1,820 posts)The Federal Housing Finance Agency's acting director, Edward J. DeMarco, said that offering debt forgiveness would not make a "meaningful improvement in reducing foreclosures in a cost effective way for taxpayers.
He should be forced to defend his position publicly.
I don't think he can.
Vincardog
(20,234 posts)That would expose the vast majority of them as BANKRUPT. They are following the rMoney and bush the lessor's plan of
Paying themselves BONUSES while bankrupting companies and stealing their assets.
99th_Monkey
(19,326 posts)In case everyone's forgotten ... Obama is the fucking
PRESIDENT, the Decider-in-Chief.
Is not DeMarco and appointee? I'm not certain this
is true, but if he is an appointee, Obama should not
take this shit from him, like "oh he wouldn't let us
do the right thing. whatever." and just go home with
his tail between his legs.
Sheesh!!
flpoljunkie
(26,184 posts)99th_Monkey
(19,326 posts)Last edited Wed Aug 1, 2012, 01:31 AM - Edit history (1)
in the GOP dominated House.
So I guess at least Obama tried.
They'd probably refuse to confirm anyone to the
left of Carl Rove?
Or maybe this is a seminal moment,
where Obama could work it to his
advantage, do some old fashioned
"horse trading" as LBJ used to say.
Crow73
(257 posts)There really is no need.
The banks cannot prove they own the house.
If they cannot prove ownership the debt in null and void.
crimson77
(305 posts)Last edited Tue Jul 31, 2012, 07:49 PM - Edit history (1)
would be under 8% after the 2009 summer of recovery? He sounds pretty bad at his job.
Edit: Sorry, I am especially snarky because the Red Sox didn't make any big trades.