Just in case you missed this article in The Hill, the headline will save you from any suspense: Banks to benefit most from White House program to help fight foreclosures.

Here’s the bad news:

“Banks will get the biggest benefit from an Obama administration housing program designed to help unemployed homeowners escape foreclosure.

Housing experts expressed concern that banks, not homeowners, will be helped by the White House’s $3 billion funding infusion — $2 billion from the Treasury Department and another $1 billion from the Housing and Urban Development Department — going to those states hit hardest by the housing market crash and unemployment.”

This is no surprise, as we have mentioned repeatedly (here, here, here and here), the so-called mods and abatement programs are thinly disguised back door bailouts for banks.

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Previously:
More Foreclosures, Please . . . (March 25th, 2010)

Treasury Looks to Mandate Foreclosure Abatements, Mortgage Mods (February 23rd, 2010)

Fannie And Freddie And the Backdoor Bank Bailout (May 12th, 2010)

GSEs: $1 Trillion Dumping Ground for Bad Bank Loans (June 14th, 2010)

Source:
Banks to benefit most from White House program to help fight foreclosures
Vicki Needham
The Hill 08/15/10 
http://thehill.com/blogs/on-the-money/banking-financial-institutions/114349-banks-to-benefit-most-from-white-house-program-to-stave-off-foreclo

Category: Bailouts, Credit, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “Guess Who Benefits Most From Foreclosure Abatements?”

  1. louis says:

    The usual response

    “Give them bread and circuses and they will never revolt”

    Mass default is going to be the only way to wake them up.

    BR- do you think anybody inside the banks executive’s offices realizes an oppourtunity to rework loans and come out with something? Or do they just ride these hidden bailouts and foreclose until they are forced to change their buisness model?

  2. ToNYC says:

    It’s all about the money…and the money goes to the Banks first when the Federal Reserve big bag of bubbles run out. Well, it has run out. There is some money and the Federal Reserve will fight to make sure the Banks get it first, after all they make the stuff, not the people. The people aren’t members.
    Please take a moment to start the process of revoking the Federal Reserve Act of 1913. The Wizard of 33 Liberty has lost its curtain.

  3. Winston Munn says:

    We the People can only vote; the banking cartel, however, counts the ballots.

  4. franklin411 says:

    Barry,
    You should have included this link–you need to remind people that the Obama administration *did* try to resolve this issue multiple times, but they were shot down by the GOP and conservative Democrats:

    “The defeat is a setback for President Barack Obama’s administration, which included cram-down in the anti-foreclosure plan aiming to help 9 million homeowners.”

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZgoZUJbGqpQ&refer=home

  5. ToNYC says:

    The B.O. Administration created woulda coulda made it until it lost it as we roll along to yet another honest conundrum…and the looting goes on..ta-da.

  6. obsvr-1 says:

    stop the presses please !!!

    Back door, front door, side door and through the window bailouts for the banksters … this problem will not be solved by trying to re-inflate home asset values or “life boats” for the underwater mortgages with money.

    The toxic assets on bank balance sheets are of their own doing, the fact that they originate to distribute then diced and sliced the whole loans into “innovative” structured securities has complicated the unwinding. It’s a bummer when creative destruction is more destructive than creative.

  7. Sechel says:

    These programs are designed by Treasury and Tim Geithner. Wasn’t Tim the guy behind 100% pay-out on AIG CDS? Where is my look of surprise?

  8. d4winds says:

    By contrast to 2008 election, Wall Street contributions are now backing Rs over Ds. Something must be done!

  9. [...] In case you didn't know, foreclosure abatements are yet another backdoor bailout for the banks.  (TBP) [...]

  10. Sechel says:

    In fairness, the administration orginally wanted to have bankruptcy judges engaged in loan mods which would have been harsher on second liens, but the banks fought this.

  11. ToNYC says:

    ‘…but the banks fought this.’
    meaning they leaned on any US Administration since JFK and had their way, in all unfairness by whacking them in their reelection chances / pocketbook because the Fed makes the money since 1913.

  12. TakBak04 says:

    @Mathman

    ——-
    Rupert Murdoch strikes again: We must get Corporate/Lobby Money out of Politics!

    Fox parent (NewsCorp)gives $1 million to Republican Governor’s Assoc.
    Ben Smith–Politico
    August 16, 2010

    News Corp., which owns Fox News and the New York Post, gave $1 million to Haley Barbour’s Republican Governors Association this year, according to the RGA’s most recent filing.

    The company’s media outlets play politics more openly than most, but the huge contribution to a party committee is a new step toward an open identification between Rupert Murdoch’s News Corp. and the GOP. The company’s highest-ranking Democratic executive, Peter Chernin, recently departed.

    The $1 million contribution this June 24 was first reported by Bloomberg and appears on the RGA’s July 15 filing with the Internal Revenue Service.

    The group’s other seven-figure donor is the libertarian billionaire David Koch. http://www.politico.com/blogs/bensmith/0810/Fox_parent_gives_1_million_to_RGA.html

  13. foreclosures says:

    Of course, forget every hard working American. Even though they pay the bills at the end of the day, lets not help them. They’ll get back on their feet.

  14. [...] argued all of the HAMP and foreclosure abatement programs are ultimately counter-productive, and benefit the banks, not the home owners. I have called for allowing the process to proceed naturally, letting prices [...]