“Obama to Bypass Congress on Mortgages” … But “New Obama Foreclosure Plan Helps Banks At Taxpayers’ Expense”
by George Washington
CBS News notes that Obama is bypassing Congress to enact mortgage reform:
President Obama is going to begin a series of executive branch actions that will not require action from Congress – or the assent of Republicans.
With recovery in the housing market tied to economic recovery, Mr. Obama will today announce what senior officials are calling a “major overhaul” of the government’s underused refinance program for federally guaranteed mortgages, in order to aid homeowners having difficult refinancing their housing loan.
Late Monday morning, the Federal Housing Finance Agency released details of new changes to its Home Affordable Refinance, known as HARP.
It may sound at first blush like Obama is bypassing the obstructionist Congress to issue executive orders to help homeowners.
But as Huffington Post notes, in a story entitled “New Obama Foreclosure Plan Helps Banks At Taxpayers’ Expense “:
A key new condition in the plan would shift the financial liability for refinanced loans from Wall Street banks to the American taxpayer.