The Obama Administration is extending an unfair program to
help those borrowers who were dishonest about their creditworthiness for
obtaining a mortgage or who got in over their heads by purchasing homes far
larger than they could afford to maintain.
The Administration is doubling the amount of the mortgage principle
reduction for borrowers at risk of foreclosure for failure to pay their
mortgages from $5,000 to $10,000. The welfare
program is funded at the expense of taxpayers who were responsible and yet who
lost value in their homes as a result of the mortgage defaults that burst the
housing bubble, which exacerbated significantly the recession and caused the
Panic of 2008. Such policies thus reward
irresponsibility while punishing responsibility with taxation. Furthermore, there has been no federal aid
for responsible homeowners to make up for the loss of their home equity.
See also my
post from April of 2012, on a related story in which I expound on the issue of
federal aid for mortgage holders in greater detail, Outrageous Mortgage
Foreclosure Settlement Rewards Irresponsible Homeowners, http://williamcinfici.blogspot.com/2012/04/outrageous-mortgage-foreclosure.html.
In it, I also explain the complicity of
liberal federal policies in causing the problem by promoting lending to irresponsible
borrowers in the first place.
It was outrage
over the Obama Administration welfare program for irresponsible homeowners that
it is now extending that sparked the tea party movement in 2009. I hope that outrage over the Administration’s
reward for irresponsible borrowers will renew the movement for fiscal
responsibility.
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