This is a charming moment with President Obama but regarding the substance…this is yet another example of a proposal that he has given to help struggling homeowners. In February – President Obama announced his proposal; it was Dead On Arrival (DOA) with the Republican party. Up till now – the President and Congress’s plans to stem the tide of real estate has so far been unsuccessful. There has not been a “cramdown” of principles for homeowners “underwater”; in other words – people who owe more than their homes have not have a reevaluation of the debt they owed.
And that is one of the core issues driving the foreclosure fiasco but not all. History has shown though that despite past failures – one must not give up…one must continue to offer smart solutions until a solution is finally found. Republicans have yet to offer a counter-proposal to address the country’s housing problems and they’re blocking the only proposal currently out there. And this is real money in people’s pockets…just another example of Republican obstruction that prevents an economic recovery.
The Washington Post explains President Obama’s proposal that Republicans are still blocking- article HERE:
White House officials estimated that the proposal, which requires congressional approval, would cost taxpayers between $5 billion and $10 billion. To offset that cost, Obama reprised his previous idea of imposing a new tax on the profits of financial firms. Republicans pledged to oppose the proposal.
To help the economy get more of a boost from low interest rates, Obama proposed that almost anyone who has a credit score above 580 and has been paying his or her monthly mortgage bill on time for the past six months be able to refinance. It wouldn’t matter under Obama’s proposal whether borrowers had government-backed mortgages or loans owned by banks and other private investors.
Comparing that to Mitt Romney’s plan – Firedoglake has the break down HERE:
And now GOP presidential candidate Mitt Romney has come up with an even more sure-fire plan to help out his new BFF, the Grim Reaper. Now Romney wants to not only eliminate most U.S. housing subsidies, he wants to eliminate the entire department of Housing and Urban Renewal as well. That will certainly speed up the Grim Reaper’s efforts for sure.
According to Forbes magazine, “In a closed-door Florida fundraiser for donors tonight, Mitt Romney offered a rare glimpse into his policy plans if elected President. And, as NBC reports, he got quite trigger-happy.” http://www.forbes.com/sites/markbergen/2012/04/15/mitt-romney-says-he-may-ditch-hud/
According to TruthOut, “Romney’s plan to eliminate HUD, assuming he didn’t shuffle its programs to other departments, would bring an end to critical programs like Section 8 housing vouchers and community development block grants. And eliminating housing assistance is even more problematic given the disproportionate percentage of veterans in the homeless population.” http://truth-out.org/news/item/8580-mitt-romney-tells-rich-donors-his-secret-plan-to-cut-housing-assistance
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