Obama Offers Meager Mortgage Assistance for Homeowners
Obama’s new mortgage assistance program looks great, until you realize that it’s 2 percent of the money he unsuccessfully gave banks to fix the same problem.
Jul 31, 202012.2K Shares370.5K Views
It is with great fanfare that President Obama will roll out his new planto help keep struggling homeowners from going into foreclosure. His $1.5 billion program will provide block grantsto states in which housing prices have dropped 20 percent from their all-time highs. Thus, only homeowners in Nevada, California, Arizona, Michigan and Florida will qualify.
Housing finance officials in those states will be able to use their block grants, upon receiving approval from federal officials, to help unemployed homeowners or provide assistance with new home purchases or mortgage modifications.
The fact that Obama thinks he can help a large number of homeowners in the five hardest-hit states with the very mortgage issues a program that cost 50 times as much was designed to resolve means either that the first program didn’t need that much money or that the banks who profited from it didn’t use their profits to help any American not employed by a bank.