AFSCME 3357-HOF'S BLOG

Obama Mortgage Plan
Or Hands Off?

I don't know about you, but I was a little disappointed with President Obama's mortgage plan that was announced this week. The Obama plan features easing of refinancing rules for Fannie Mae and Freddie Mac backed loans and incentives to lenders for refinancing that meet affordability guidelines. This promises to be so insufficient, that it might be worse than nothing at all. I'm inclined to agree with commentator James Saft, writing for Reuters here, advocating the proposition that the housing markets must be allowed to reach their natural bottom in order to deflate the bubble market that rose over a number of years. Still, I think we need bankruptcy cram down relief, and I wish President Obama would grow a pair and use his political capital to get it pushed through Congress now rather than later.