Homeowner Affordability and Stability Plan Should Be Voted Down

As we all know, last week we saw another Government sell out.  The most important part of President Obama’s Homeowner Affordability and Stability Plan  (HASP) was voted down by our wonderful Senators in Washington, D.C.  The Durbin amendment would have allowed Bankruptcy Judges to cramdown first mortgages and interest rates on many homeowners primary residences at no cost to the taxpayers.  Without this “Big Stick”, HASP is now just a spending bill that will compensate the banks and mortgage companies, as the program is purely voluntary by the lenders.  

It is estimated that over the next couple of years 8 million more homes will go into foreclosure in the United States.   Likewise, the Democratic Senators argued that the amendment to HASP would have allowed an estimaged 1.7 million homeowners to stay in their homes.  As if this wasn’t enough incentive to overwhelmingly pass the legislation with the Durbin Amendment in tact:  How about the fact that it would cost the taxpayers nothing.

The amendment met with resistance in the Senate from the beginning.  Guess which industry didn’t want this legislation to pass?  The banks and mortgage companies.  So, the provision was defeated along party lines with 12 Democrats voting along with all the Republicans who voted no.But HASP is still on the table, just without President Obama’s big stick.  Do you recall what President Obama said to get elected.  He said that he supported the Judicial Cramdown on multiple occasions on the campaign trail.  When the opposition came from the American Bankers Association, President Obama was nowhere to be seen, and neither was his big stick.

So, this begs the Question:  Why do we still need HASP?  Well, the HASP bill will probably be passed next week because it will spend money needlessly.  Will this money go into the economy as stimulus?  No way, Jose.  Will it be available for Homeowners to tap into to save their homes?  No way, Jose.  Will it cost the taxpayers money?  You better believe it.  Amazingly, the banks wanted a provision in the Bill which would reduce a premium to be paid by the banks to the FDIC, to the tune of $7.7 Billion dollars.  

Likewise, there is a provision to prevent or limit lawsuits against mortgage servicers which will inevitably stem from loan modifications. The provision creates legal protection for companies that may engage in illegal practices.  Are you kidding me???

What kind of idiots do these jokers in Washington think we are?  I am outraged right now.  How could this bill be in anyone’s best interests right now, except for the Banks.  But, guess what will happen?  There will be no media coverage of the Bill, and it will pass before anyone reads it.  Then we will all be standing around scratching our heads saying this is terrible.  How could they let this happen?  Wake Up America, It’s Happening.

Related posts:

1. What is the Obama Administration’s Home Affordability and Stability Plan?
2. Bankruptcy Attorneys Come to Washington With a Plan to Fix the Mortgage Foreclosure Crisis
3. Obama Housing Plan