Regulator Rebuffs Obama on Plan to Ease Housing Debt

[flpoljunkie]

Source: New York Times

Regulator Rebuffs Obama on Plan to Ease Housing Debt
By BINYAMIN APPELBAUM
Published: July 31, 2012 Comment

WASHINGTON – The independent federal agency that administers Fannie Mae and Freddie Mac said once again on Tuesday that it would not let the mortgage finance companies offer debt forgiveness to homeowners, rejecting the entreaties of congressional Democrats and the Obama administration.

The Federal Housing Finance Agency's acting director, Edward J. DeMarco, said that offering debt forgiveness would not make a "meaningful improvement in reducing foreclosures in a cost effective way for taxpayers.” The Federal Housing Finance Agency said it had concluded after months of study that debt forgiveness might benefit up to half a million homeowners, but that the costs – including the cost to taxpayers – outweighed the potential benefits.

That has fueled criticism that the agency is seeking reasons to reject principal forgiveness even if the program appears to meet the requirements of the law.

“I just don’t understand why they’re applying this level of caution and scrutiny,” said Jared Bernstein, a former economic adviser to Vice President Joseph R. Biden Jr. “It strikes me as bad for homeowners, bad for taxpayers and bad for the macroeconomy.”

Read more: http://www.nytimes.com/2012/08/01/business/us-agency-bars-fannie-and-freddie-from-reducing-principal.html?hp

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Jared Bernstein's right, of course.

[99th_Monkey]

1. Well, since the regulators aren't regulating banksters

I guess they need something to do to justify their existence.

[DJ13]

2. But they ARE regulating banksters

They see their sole mission as regulating the continued profits being generated by the banksters, no matter what it does to the overall economy.

[flpoljunkie]

3. DeMarco's the agency's acting director. Not sure why NYT calls him a 'regulator.'

Treasury Secretary Tim Geithner has written him a letter asking today asking him to reconsider.

http://www.treasury.gov/connect/blog/Pages/tfg-letter-demarco.aspx

[JDPriestly]

7. Who is DeMarco

http://en.wikipedia.org/wiki/Edward_DeMarco

President Obama chose North Carolina Banking Commissioner Joseph Smith to be DeMarco's successor Nov. 13, 2010, but DeMarco is still expected to play a key role in the agency.

http://www.washingtonpost.com/politics/edward-j-demarco/gIQAK9StKP_topic.html

Republican obstructionist.

[burnsei sensei]

4. I'd like to know why.

The Federal Housing Finance Agency's acting director, Edward J. DeMarco, said that offering debt forgiveness would not make a "meaningful improvement in reducing foreclosures in a cost effective way for taxpayers.”

He should be forced to defend his position publicly.
I don't think he can.

[Vincardog]

5. Because "offering debt forgiveness " would force the banks to mark their assets to the market price

That would expose the vast majority of them as BANKRUPT. They are following the rMoney and bush the lessor's plan of
Paying themselves BONUSES while bankrupting companies and stealing their assets.

[99th_Monkey]

8. DeMarco should be replaced, and pronto

In case everyone's forgotten ... Obama is the fucking
PRESIDENT, the Decider-in-Chief.

Is not DeMarco and appointee? I'm not certain this
is true, but if he is an appointee, Obama should not
take this shit from him, like "oh he wouldn't let us
do the right thing. whatever." and just go home with
his tail between his legs.

Sheesh!!

[flpoljunkie]

10. Believe Republicans have vowed to block the person Obama wanted to replace him.

[99th_Monkey]

12. **Snap** I totally forgot about the blovating Knuckle-draggers

Last edited Wed Aug 1, 2012, 01:31 AM - Edit history (1)

in the GOP dominated House.

So I guess at least Obama tried.

They'd probably refuse to confirm anyone to the
left of Carl Rove?

Or maybe this is a seminal moment,
where Obama could work it to his
advantage, do some old fashioned
"horse trading" as LBJ used to say.

[Crow73]

6. No need

There really is no need.
The banks cannot prove they own the house.
If they cannot prove ownership the debt in null and void.

[crimson77]

9. Is Jared Bernstein the guy who told my guy VP Biden to say that the unemployment rate

Last edited Tue Jul 31, 2012, 07:49 PM - Edit history (1)

would be under 8% after the 2009 summer of recovery? He sounds pretty bad at his job.

Edit: Sorry, I am especially snarky because the Red Sox didn't make any big trades.

[flpoljunkie]

11. Everyone was wrong because no one knew the recession would be as deep as it was.