⭐🔥 Click here to check Latest Celeb News & Celebrity Gossip in 2022! 🔥⭐
The Washington Independent
The Washington Independent

The Obama Administration Against a Foreclosure Moratorium

Today, the Obama administration lays out the case against a nationwide foreclosure moratorium. In the Huffington Post, Shaun Donovan, the Secretary of Housing

Tyreece Bauer
Last updated: Jul 31, 2020 | Oct 18, 2010

Today, the Obama administration lays out the case against a nationwide foreclosure moratorium. In the Huffington Post, Shaun Donovan, the Secretary of Housing and Urban Development, argues that the government is investigating the foreclosure fraud crisis and that a moratorium would prove counterproductive in terms of helping homeowners in the meantime — only driving down home values in areas hit hard by foreclosure:

[B]anks must follow the law — and those that haven’t should immediately fix what is wrong. Given the problems that have already been found and admitted to by some servicers, the Obama Administration fully supports the voluntary moratoria that are already in place and others should they be deemed necessary. Some have suggested, however, that all foreclosures in every state, under every servicer, should be stopped. But a national, blanket moratorium on all foreclosure sales would do far more harm than good — hurting homeowners and home-buyers alike.

Though a few politicians and many housing advocates are calling for a blanket moratorium, it seems unlikely now. But the situation does underscore that the Obama administration could do more, much more, to help families underwater, in foreclosure and otherwise hit by the housing crisis. Towards the end of the piece, Donovan writes:

By the time the home gets to foreclosure, it’s often too late to help families stay in their homes — they may be too far behind or in some cases, they’ve already left the home. ** Banks need to provide more help, more people, more resources to those families facing a crisis long before they ever get to a foreclosure — so more families can keep their homes. And where foreclosure is not avoidable, having been processed legally and appropriately, banks should help families transition to sustainable housing situations with dignity.**

Two things here: First, there is ample evidence that banks are not following and have not followed the proper process for dealing with homeowners in default. Banks are usually contractually obligated to provide a number of alternative solutions to homeowners behind on their mortgages. In recent years, though, servicers have tended to rush homeowners straight to foreclosure. The administration should make sure servicers and lenders are following the preexisting guidelines.

Second, it is all well and good for Donovan to say that the banks should “help families transition to sustainable housing situations with dignity.” But the administration can do more to make sure that happens. It could, for instance, push for right-to-rent legislation to move out of Congress. And the Treasury has spent only a fraction of its Home Affordable Modification Program funding –funding it could be using to provide incentives for banks to keep families in their homes, by improving and expanding HAMP **and related programs.

Tyreece Bauer | Analyst and photographer in the field of technology. When I'm not working on my laptop, I like to go surfing, hiking with friends, and go karting or play soccer with my nephew. I enjoy traveling and am excited to visit Tokyo this summer. What are your plans for your next trip?


Rep. Patrick McHenry: Please, Conservatives, Fill Out Your Census Forms!

The conservative congressman from North Carolina, a constant critic of the census -- one of the people who sounded the alarm about politicization when the

Rep. Paulsen allies with medical device industry to relax FDA oversight

Source: Flickr; Republicanconference (www.flickr.com/photos/republicanconference) On the heels of the Minnesota Independent story last week about U.S. Rep. Erik Paulsen’s cozy financial relationship with the medical device industry, the New York Times reported Tuesday that some health professionals are alarmed by Paulsen’s push to relax Food and Drug Administration (FDA) oversight

Rep. Parker Griffith (R-Ala.)

One of the most conservative Democrats in the House -- a freshman who said he couldn’t support Nancy Pelosi again -- is going to switch over to the GOP. Josh

Rep. Paulsen touts balanced budget constitutional amendment

In a post for the conservative blog True North , U.S. Rep

Rep. Paulsen, Karl Rove the latest to get ‘glittered’

Rep. Erik Paulsen and former Bush staffer Karl Rove were both showered with glitter at the Midwest Leadership Conference Friday

Rep. Paul Ryan to deliver SOTU response

Chairman of the House Budget Committee Rep. Paul Ryan (R-Wis.) will deliver the Republican response to the State of the Union Tuesday, according to Mike Allen

Rep. Perlmutter criticizes House measure that would eliminate 800K federal jobs

Congressman Ed Perlmutter today issued a scathing statement criticizing the House of Representatives for passing a spending bill that could put nearly a million federal employees out of work. The Colorado delegation voted strictly on party lines, with all four Republicans voting in favor of the bill and the three Democrats voting in opposition. Perlmutter’s statement: “My number one priority is to get people back to work because that’s the best thing we can do to pay our debt and move forward toward economic stability

Rep. Perlmutter to hold constituent meet-up in grocery store

Colorado Congressman Ed Perlmutter will hold a Government in the Grocery constituent meet-up this evening from 5-7 at the Safeway at 38th and Wadsworth in Wheat Ridge. The address is 3900 Wadsworth. The meeting, where Perlmutter typically sits at a folding table and talks to whomever shows up, is free and open to the public

Rep. Peace, ACLU seek investigation of soldier’s allegations of racial discrimination in Afghanistan

Both Rep. Steve Pearce (R-NM) and the American Civil Liberties Union agree: There needs to be an investigation into Spc.

© Copyright 2022 The Washington Independent All Rights Reserved

Terms & Privacy | twi.news@washingtonindependent.com

⭐🔥 Click here to check Latest Celeb News & Celebrity Gossip in 2022! 🔥⭐