 | Obama to Order Fannie and Freddie to Forgive Homeowners in Default? |
Quite an interesting little tidbit. Of course, with Our Dark Overlord running the show, property rights and contracts between parties are now null and void at the whim of his majesty as he attempts to mitigate the hemorrhaging in the midterms by pandering to homeowners who couldn't afford a house in the first place---thus, continuing to ensure that the homeowners will be kept in a state of perpetual debt and servitude:
An August Surprise from Obama?
Aug 5, 2010 - james pethokoukis
Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama's loan modification effort. HARP was just extended through June 30, 2011.
The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. A few key points:
1) Republican leaders believe this is going to happen since GOPers and Democratic moderates in the Senate are unwilling to spend more taxpayer money on more stimulus. But such a housing plan would allow the White House to sidestep congressional objections and show voters it is doing something tangible about an economy that seems to be weakening.
CLICK HERE to continue reading this article over at blogs.reuters.com
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