08-05-2009, 09:25 AM
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#488 (permalink)
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Junkie
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Quote:
Originally Posted by smooth
Well, that and the minor point that Obama didn't orchestrate the bank bailouts...
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Obama is the "man" now. He needs to start acting like it. What is Obama doing as the banks continue to screw the American public? Why is he letting banks get away with it? He wants us to buy into all of these government programs, but they don't follow up on the programs they have. Short memories.
From my local paper's editorial page.
Quote:
Lenders failing to modify home loans
BofA, Wells among stragglers that need to provide more help.
Posted: Wednesday, Aug. 05, 2009
It doesn't take a math genius to see that there's something wrong with this picture. The rejuvenated banking industry – resuscitated by taxpayer bailout dollars – doles out billions in employee bonuses but is helping only a fraction of struggling homeowners avoid foreclosure.
That's what a new report from the Treasury Department reveals. As of July, only 15 of every 100 families eligible for a modification of their mortgage have been offered one. That's only about 400,000 homeowners. The remaining 2.3 million eligible are still sinking in financial quicksand, getting little or no help from lenders to avoid calamity.
That's outrageous. The government's foreclosure assistance offered real hope to distressed consumers, and by extension the communities where they lived. The program pledged cash incentives and subsidies to mortgage holders who would modify home loans.
But the program depended on the participation of lenders. The lenders who signed up aren't doing their part. Only 9 percent of eligible borrowers have gotten their mortgage payments reduced. Of the 38 banks and lending companies participating, 10 hadn't changed a single loan to help homeowners afford their payments.
Charlotte's big banks are among the stragglers. Bank of America modified just 4 percent of eligible loans. Wells Fargo modified just 6 percent. Wachovia, acquired by Wells Fargo last December, modified just 2 percent.
That's unacceptable.
A Wells Fargo spokesman admitted as much, acknowledging that the bank had “fallen short” and said it aimed to sign up borrowers and send out modification offers this week.
Both banks need to get cracking. Foreclosures can ripple through communities, lowering home values and sparking bankruptcies, joblessness and reduced tax revenues. All of us suffer when that happens. Banks and other lending institutions can play a critical role in staving off such disaster. But that means acting in the community's best interests as well as stockholders'.
The government shares blame for the problems. Officials didn't have the guidelines for the foreclosure program in place as quickly as they should have. They also haven't monitored it sufficiently to ensure that applicants aren't improperly rejected, as some housing advocates claim.
Federal officials must fix those problems, quickly. Any obstacles to lenders giving a helping hand to homeowners must be removed.
But BofA, Wells Fargo and others must do more, too. The number of foreclosures continues to rise. More than 1.5 million have been reported so far this year.
Some homeowners are so swamped in debt that they don't qualify for help, and many don't deserve it. But those who do qualify should have access to this program. Banks and other lenders must do their part to ensure that they do.
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http://www.charlotteobserver.com/opi...ry/870166.html
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"Democracy is two wolves and a sheep voting on lunch."
"It is useless for the sheep to pass resolutions on vegetarianism while the wolf is of a different opinion."
"If you live among wolves you have to act like one."
"A lady screams at the mouse but smiles at the wolf. A gentleman is a wolf who sends flowers."
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