Who says bipartisanship is dead? From President Bush to Hillary Clinton, Barack Obama and John Edwards, to Mitt Romney and John McCain, virtually everyone in Washington agrees: The government must Do Something to stop home foreclosures across the country. These leaders agree on the total presumption of homeowner innocence. The borrower-as-victim and lender-as-predator storylines are etched in stone. Can`t let reality get in the way of election-year pander-monium.
Special guests at the State of the Union address are usually extraordinary heroes, entrepreneurs or citizens who`ve gone above and beyond the call of duty. On Monday night, one of those guests was an Indiana woman whose claim to fame is that she called a 1-800 number and was assisted by the "Hope Now Alliance," a group Bush convened, which, according to him, "is helping many struggling homeowners avoid foreclosure."[2008 State Of The Union]
Subprime victims are the new heroes. Welcome to the politics of foreclosure.
Housing Czarina Hillary immediately jumped on the president`s address and on news that foreclosure rates skyrocketed 79 percent over the last year. She reiterated her call for "a 90-day foreclosure moratorium on subprime mortgages and a 5-year freeze in rates on subprime loans." Borrowers who knowingly bought more house than they could pay for have no place in Hillary`s world. "It is indisputable that brokers and mortgage companies lured families into mortgages that were designed to end in foreclosure," she stated in a Denver Post questionnaire this week.
Continuing the theme of duped borrowers, Sen. Chuck Schumer is crusading for more federally subsidized "mortgage counseling." He wants $200 million more, in addition to the $180 million for "Housing Counseling Assistance" that he helped stick into the omnibus spending bill last year. A significant portion of that will go to government-approved counselors affiliated with left-wing activist groups such as La Raza and ACORN.[ House Passes $146 Billion Economic Aid Package, By David M. Herszenhorn, New York Times, January 29, 2008]