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Tuesday, August 21, 2012

Obama Allies Criticize President’s Efforts On Foreclosure

(AP)

Are President Obama’s decisions on the foreclosure crisis hurting his re-election chances?

The administration has tackled the foreclosure crisis with what New York Times reporter Binyamin Appelbaum calls a limited aid program:

He tried to finesse the cleanup of the housing crash, rejecting unpopular proposals for a broad bailout of homeowners facing foreclosure in favor of a limited aid program — and a bet that a recovering economy would take care of the rest.

During his first two years in office, Mr. Obama and his advisers repeatedly affirmed this carefully calibrated strategy, leaving unspent hundreds of billions of dollars that Congress had allocated to buy mortgage loans, even as millions of people lost their homes and the economic recovery stalled somewhere between crisis and prosperity.

Political allies of the President are saying that President Obama’s decision not to do more to help struggling homeowners may have been the administration’s most serious mistake.

California Democratic Representative Zoe Lofgren told the New York Times that the administration was simply “not aggressive enough .. and as a consequence they did not interrupt the catastrophic spiral downward in our economy.”

Administration officials say they did what was possible, and that it would have been difficult to do more given how the mortgage and banking industry is set up. And they point out that there was a tremendous amount of political opposition to more aggressive measures.

Guest:

  • Binyamin Appelbaum, Washington correspondent for the New York Times

Please follow our community rules when engaging in comment discussion on this site.
  • ImaTaxpayer2

    We don’t have a housing crisis, we have a jobs crisis. Bailing out people that made bad home purchase decisions isn’t the answer. I would like to know though, what would it have cost to pay everyone’s mortgage rather than bail out the banks, probably what we should have done.

    • Givemeabreak

      You know, catastrophic things can happen to people in their lives, through absolutely no fault of their own, which can cause their circumstances to change. This happened to a family member who purchased an affordable home in 2006, and it was NOT a “bad purchase decision” at the time. But, because of the coincidence of an out-of-the-blue unforeseen personal tragedy happening at the same time as the housing bust this family member now has an “underwater” mortgage; and the same banks and financiers who caused the housing bust and got bailed out won’t give this homeowner a break.

  • It

    Obama
    had a part in creating the housing crisis. He pushed for the sub-prime lending
    that caused it back before he was even a politician. How do you expect him to
    fix the present when he will not even admit that his economic policies of the
    past were bad?

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