Freddie Mac and Fannie Mae's opposition to principal reductions on mortgages means about half of homeowners in the U.S. couldn't qualify for the most significant help from banks' settlement today with states.
The Obama administration is billing today's $25 billion agreement [1] between most states and five banks that engaged in flawed or deceptive practices as a big win [2] for struggling homeowners.
Most of the money in the settlement isn't a penalty, or a fine levied on the banks. Instead, the biggest slice of the settlement will be money banks put toward principal reduction [3] -- reducing the amount owed by struggling or underwater borrowers [4]. (Banks will also put smaller amounts toward refinancing and other ways of helping people get back in control of spiraling debt.)
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I'm sure it will all go to the ones who bought more house than they could afford (i.e. hussiens voting block).
ReplyDeleteWhy should we the taxpayers bail out people that can't meet the conditions of the contract they signed?
ReplyDeleteIf you can't pay for teh house you bought, then I guess you didn't really buy it.