It’s official. The recovering US housing market, under the Obama Administration, is going to need a $1 billion dollar bailout and soon. No wonder the President was late with his budget. Once again the leaches running our federal government are asking the sheep, or at least our representatives, to look the other way while the alleged housing recovery receives another financial transfusion courtesy of a country $17 Trillion dollars in debt.
On March 29, 2013, I read a highly recommended article by Peter Schiff entitled “The Stimulus Trap.” A few days later the national media erupted when the Obama Administration publicly admitted it was pressing banks to make loans to prospective homebuyers with poor credit. I watched in amazement as FOX News interviewed a Florida mortgage company executive praising the “very real housing market recovery” and chastising the Obama administration for recommending the same lending policies that led to the 2007 housing market collapse and our national recession. I had to asked myself, what planet are these people on?
For those of you who will skip Mr. Schiff’s article, let me offer you just a few of its many revelations. As stated in Mr. Schiff’s article:
“Fannie Mae and Freddie Mac (which are now officially government agencies)” “bought or insured more than nine out of 10 home mortgages originated last year, a $1.3 trillion business.” “Compare this to 2006, when the government share was only three in 10.” Schiff goes on to say: “In the fourth quarter of 2012, 44% of all FHA borrowers either had no credit score or a score of 679 or lower. In addition, the overwhelming majority of FHA guaranteed loans are being made at 95% or greater loan-to-value. This means down payments are an after thought.” “Under the FHA’s Home Affordable Refinance Program (HARP), loans are now even extended to underwater borrower’s whose mortgages may be worth far more than their homes.”
Last Wednesday April 3, President Obama released his two month overdue, 2014 fiscal budget. It is nice to know, in between his lavish vacations, White House raves and stumping for national priorities like gay marriage, legalizing Hispanic gang members, and infringing on second amendment rights, our President was actually doing the peoples work. Or should I say: doing the people that work.
According to Obama’s fiscal 2014 budget, the Federal Housing Administration will need to draw at least $943 million from the U.S. Treasury this fiscal year to cover funding shortfalls. Imagine that. The White House that was over two months late in submitting a budget, after three years of operating the U.S. government without a budget, asks our representatives, to once again add to the record national debt to keep “hope and change “ alive in the government’s ongoing effort to provide affordable housing in America. Let me remind you that the taxpayer is already on the hook for $16 billion in FHA backed loan failures.
In response to the President’s budget proposals call for another FHA bailout, House Financial Services Committee Chairmen, Jeb Hensarling (R-Texas), expressed his outrage for the Presidents requests. According to Hensarling: “If the FHA were a private financial institution, likely somebody would be fired, somebody would be fined or the institution would find itself in receivership. Instead the FHA is merrily on its way to becoming the recipient of the next great taxpayer bailout.” I agree, however, Rep. Hensarling forgot to mention potential prosecution, conviction and imprisonment for past and ongoing FHA fraud.
I like Rep. Hensarling, but why did it take an Obama budget to raise concerns about FHA financial troubles? You would think that the housing markets would be given a little more attention, since the last housing collapse ate between 15 and 30 percent of American home values, evaporated, in a matter of months, 40% of the stock market and with it many Americans retirement and college education funds. Not to mention the chaos that it caused and continues to fuel in the European Union.
The Presidents FHA Commissioner, Carol Galante is already spinning this very real need for financial assistance as a draw, not a bailout. Suggesting, like the auto bailout, it will all be paid back with interest. Somehow the White House is hoping to cover the FHA funding gap bailout request with a new round of big bank settlements (money extorted by the DOJ from banks for alleged predatory lending practices) or higher revenues projected from new government backed mortgages. What? Can you say Obama Ponzi scheme?
Sub-prime mortgages didn’t die with the housing collapse, they were just renamed and re-packaged. Dodd-Frank solved nothing. Instead of indicting and convicting the responsible parties for destroying our economy, the Obama DOJ has become bag men for a soon to fail Obama housing market and now that the banks are all but refusing to finance bad loans, Obama has to turn to the taxpayer. Seems like Dodd and Frank bailed at the right time.
I would like to remind our President that while his IRS is busy reading private electronic communications without a warrant, pursuing a record number of audits, and burying the nation in record debt, the American middle class is dying. The US Treasury is tapped out. Americans are tapped out. We will no longer accept your lies and subversions. What we have saved, in part, is being pumped into the weapons industry, so that we can defend the homes you are taxing us out of to support for your immoral lifestyle and the lives of those who support you’re failing policies. You sir, are nothing more than an over educated charlatan in a nice suit.