An August Surprise from Obama?

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.

The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie.

Full story: An August Surprise from Obama? | Analysis & Opinion |

  • 1uncle

    Demos, through Fannie Mae and Freddy Mac tried to get us to buy houses for their special interest group. Now, they try again.
    Stop breeding dead weight on welfare.

  • hempstead1944

    If it is anything like his “Cash for Clunkers” it will end up in the cesspool of government failed programs and the taxpayer will get the bill.

    • ladylove

      yep, it cost the taxpayer sosmething 25,000 dollars a car to give 4500 dollars in credit,

      imagine what each house will cost based on those figures alone.

      WE THE PEOPLE, keep demanding stop the spending, and he and his wife deliberately show they don’t give a damn.

      thank god this democrat did not vote for this man.

      • old crank

        For all the good it did.

  • truebearing

    Another thing Obama could do if he truly cared about homeowners in trouble: stop the illegal and unethical practices of “foreclosure mills” that are making millions for unscrupulous lawyers who kick people out without due process, or giving them any chance at modification.

    Notice I said “if” Obama cared.

  • truebearing

    Lets be clear about what Obama is trying to do: buy votes.

    He doesn’t give a rat’s ass about the homeowners losing their homes. If he did, he would have developed a home modification plan that people could qualify for, he would have reigned in government spending, and would have encouraged domestic energy production, and reduced taxes on small business, and would have never forced Obamacide Care on the nation, etc. etc.

    Beyond trying to buy votes, Obama may actually be aware that the tsunami of foreclosures coming will be worse than the last one, and the toxic assets that will result will pile up on those never dealt with by the TARP scam. Add to that nightmare, commercial real estate is tanking and banks will fail when many huge loans default. And he may be trying to address the domino effect the coming foreclosures will cause, but I doubt it. He’s just trying to buy votes, and time. Time enough to consolidate power.

    One thing to homeowners who are paying their loans, whether upside down or not: the last thing you want is foreclosures surrounding your property. That WILL drop your home value like a rock. You’d be far better off if your neighbors could get a home modification.

  • recovered dem

    Obama’s determined to use taxpayer dollars to buy votes! Just makes him even more contemptible as he destroys this country with his spending.