Scorched Earth: White House Scales Back a Mortgage Relief Plan

Smirky's program to leave nothing of value behind.

http://www.heraldtribune.com/article/20081112/znyt01/811123011&tc=yahoo

WASHINGTON — The Bush administration is backing away from proposals to have the government refinance a broad swath of homeowners who face foreclosure after taking out subprime mortgages and other high-risk loans over the last few years.

The clearest sign of retreat came on Tuesday, when administration officials announced a much more limited plan to help people who have become seriously delinquent on conventional loans guaranteed by Fannie Mae and Freddie Mac, the two government-controlled mortgage finance companies.

The plan announced on Tuesday could lead to lower monthly payments for several hundred thousand homeowners, according to officials. But it would have virtually no impact on the millions of people who took out expensive subprime loans and who are at the heart of the nation’s foreclosure crisis.

The plan fell well short of one championed by the chairwoman of the Federal Deposit Insurance Corporation, Sheila C. Bair. As recently as two weeks ago, Ms. Bair thought she was close to an agreement with the Treasury Department on a plan to spend as much as $50 billion to modify mortgages and keep people in their homes.

But people close to Ms. Bair said Treasury officials broke off the discussion early last week.

Enjoy human incarnation while you have it.

Yeah, like after the election.

"...help people who have become seriously delinquent on conventional loans guaranteed by Fannie Mae and Freddie Mac."

It's like they're trying as hard as they can to NOT address the real problem.

It's the adjustable-rate mortgages, and the interest-only loans that caused the bulk of the problem
for homeowners.

This "creative financing" is at the heart of the entire mortgage-crisis--and not just with Fannie/Freddie.

BushCo relaxed banking and finance regulations--enabling all of this risky financing. The government
opened the door for the banks to give Americans just enough rope with which to hang themselves. This
is the real problem.

The fact that Bush is not addressing it--shows just how much contempt the neocons have for Americans
who dare to fall for their wicked schemes, "Hey man...you were dumb enough to agree to the financing
that the banks were pushing like rabid crack dealers. Live with it. Those of you who took out conventional loans,
you deserve help. But no one else. Enjoy!"

:argh: