Pretending To Care
Springing into action: Bush, Democrats square off on mortgage plans
…Some two million homeowners with adjustable mortgages will face higher rates — and payments — over the next year. Shifting market conditions have left many of them with more debt than they can carry — but they are unable to refinance or sell their homes without taking a big financial hit due to falling home prices and steep prepayment penalties.
…Bush stopped short of offering direct aid to mortgage borrowers facing default or foreclosures. Instead, Bush proposed that creditworthy borrowers — some of whom are now stuck in loans that are re-setting to higher monthly payments they can’t afford — be allowed to refinance with an FHA-backed loan.
The White House estimates that roughly 80,000 homeowners fall into that category — a relatively small portion of borrowers who are having trouble paying their loans.
So the Shrubbery proposes a 4% solution, a plan that might help 4% of the people in trouble because the others deserve what they got for listening to Alan Greenspan and getting an ARM [adjustable rate mortgage]. He had a plan so the recession isn’t his fault. Another 16 months and he can go back to full-time bike riding and brush clearing.
