Dec. 20 (Bloomberg) -- Congress will use the remaining $350 billion in a U.S. bank-rescue package to force the Bush administration and President-elect Barack Obama into providing foreclosure aid as the pace of people losing their homes soars.Lawmakers will agree to release the funds in exchange for Treasury Secretary Henry Paulson and Obama agreeing to programs that cut interest rates and forgive a portion of a mortgage’s principal, House Financial Services Committee Chairman Barney Frank said in a telephone interview yesterday.
Thurgy: So you know that Assistant Manager at Taco Bell who bought the house down the road from you for 10x his household income? Looks like Frank is going to knock down his principal, and not yours. Oh, and the value of your home will still go down (not to mention you'll be paying for his break). This is bad and will set off a wave of more foreclosures, a lot of which will be voluntary.
“The Democrats are finally getting it, that this administration is not going to do anything to help homeowners, and they are getting more proactive,” John Taylor, president of the National Community Reinvestment Coalition, said in a telephone interview. “Paulson has had the chance to do something like this all along, but has chosen not to. I think he’ll do it if a quid pro quo is held over him.”
Thurgy: Jebus H. Christmas! Here we go...more partisan blathering. WTF is the NCRC anyway? Sounds like they have a case of the "Mundays" and need some TARP funds to sooth those hemorrhoids. Anyway, the current and last adminstrations helped get these people into their homes, now the next administration has to figure out how to help them out of trouble? It was pretty crafty of the banks to get the bankruptcy laws changed in their favor wasn't it. Where was the Senate Banking Committee then?
Frank, a Massachusetts Democrat, said in the interview he’s drafting legislation with Senate Banking Committee Chairman Christopher Dodd that would release the remaining $350 billion in exchange for foreclosure help, aid for General Motors Corp. and Chrysler LLC and provisions to hold banks accountable for stepped up lending to consumers.
Thurgy: Did someone say crisis and give taxpayer money away? *Frank and Dodd spring into action* This "duo" remind me of a certain Robert Smigel cartoon on SNL...
Frank also plans to revise Hope for Homeowners passed by Congress in July. The program, run by the Federal Housing Administration, is aimed at helping about 400,000 homeowners by insuring as much as $300 billion in refinanced loans after servicers forgive part of the loan balance. Few lenders have signed up because banks must cut a large portion of the loan and pay high fees.Frank said he’s ready to act on the legislation during the final month of the Bush administration, without waiting until Obama’s Jan. 20 inauguration. “Why wait three weeks? Let’s do it,” Frank said. “We’re in a crisis now. How many people’s homes will be foreclosed?”
Thurgy raises hand: Every one that should??? When you promote home ownership over renting, this is what happens. When unemployment goes to 12%, how many more homeowners will need a bailout. I think the reason Frank is ready to act now is because Chanuka is near and he can't solve crisises on Jewish Holidays. If the only way to stop Frank from doing legislation are Jewish Holidays, then I hereby declare everyday a Jewish Holiday (not picking on Jewish people, just this dumbass).
