04.16.2012 0

$717 billion negative equity mortgage bailout is a fraud

Our National DebtBy Bill Wilson — The only thing standing in between the White House and a bailout of 11 million borrowers underwater on their mortgages to the tune of $717 billionis the FHFA’s Edward DeMarco, who has had the temerity of suggesting that the agency merely follow the law and protect taxpayers from unnecessary losses.

DeMarco has steadfastly rejected a widespread mortgage bailout throughout Obama’s entire term of office, and now is coming under increasing pressure from congressional Democrats who are demanding an election year payout to a favored constituency.

But it is false hope that is being generated. Even if DeMarco relented and implemented the bailout, in a recent speech to the Brookings Institution he suggested only 691,000 of the 11 million would even be eligible. Meaning, about 10.3 million people underwater on their homes would not even qualify for the program.

This makes Obama’s promise of a bailout nothing more than an empty, cynical, election year promise. What a fraud.

Bill Wilson is the President of Americans for Limited Government. You can follow Bill on Twitter at @BillWilsonALG.

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