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White House Foreclosure Plan a $50B Bust

By Rob Quinn, Newser Staff

Posted Jul 18, 2009 5:35 AM CDT

(Newser) – The Obama administration's plan to help millions of homeowners avoid foreclosure has so far been a major failure, Politico reports. It's reached just 160,000 of the 3 to 4 million homeowners it was supposed to protect, and another 2 million homes are expected to be foreclosed upon before the year is out. The White House blames mortgage servicers for dragging their feet, but lawmakers on both side are getting testy.

Progress has been "disgraceful," Senate Banking Chairman Chris Dodd said at a hearing Thursday. The administration has upped pressure on servicers, giving them a deadline of next week to show what steps they're taking to improve their performance, and publishing company-by-company results, to shame lenders into action. “We think that that type of disclosure, servicer-by-servicer, will be important to spurring greater activity on their part,” a Treasury official told Dodd's committee.

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A sign lies on the ground in front of a foreclosed home in Homestead, Fla. (AP Photo/J Pat Carter, File)

A sign advertises a bank repossessed home for sale in San Clemente, Calif. (AP Photo/Tom Stathis)

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I'm hoping that, with the stakes this high, somebody can explain to me why nothing has changed. - Senate Banking Chairman Chris Dodd (D-Conn.)

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Showing 3 of 6 comments

Ucantusethatname

Jul 18, 2009 12:47 PM CDT

Chris Dodd is the real $50B bust. He asserts that "progress has been disgraceful," which, of course, does not make sense. It is Dodd and members of Congress who share the disgrace. Voters don't get it, re-electing the same incompetents and scoundrels ad nauseam. Who wrote the legislation that governs the nation's banks, economy, and financial well-being. The same boobs who blame progress for failure.

foodchain11

Jul 18, 2009 12:25 PM CDT

Here's what's interesting: you have tracking, visibility and pressure all in a very short time. It's the banks who are refusing to do the right thing. These banks should be pressured to use the $$ as intended rather than just sopping it up for themselves. It is our govn't who is right; the banks are wrong

AdaptAndOvercome

Jul 18, 2009 6:53 AM CDT

That is the most ignorant thng I've heard yet. The financial failures that we've had to blame for America's problems were created by both Dems and Rep, but more Republicans were running the financing industry (Phil Grahm- the Gramstander from Texas, John McCain- who withdrew all his money before he lost it, too bad he wasn't warning the American people before he ran; and the Bushies and Company had their hand in every cookie jar in this country and abroad--let's not forget all that government money that went to Cheney's buddies at KBR and it's subsidieries.) Obama is working hard to get programs in place...but you still have Bushies in charge at these financial institutions. Who better to help the current President's economic agenda to fail...

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Politics • Money

housing market • mortgage • Senate Banking Committee • Obama administration • foreclosures

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