Revealed: New Book Outs Obama’s Foreclosure Modification Program as Designed to Help Bankers, Not Homeowners
In Neil Barofsky’s new book, ”Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street”, Barofsky details how
Treasury Secretary Geithner designed the Home Affordable Modification Program (HAMP) as a way for bankers to spread out their losses, even though the program was trumpeted by the White House as a program to help homeowners.
Barofsky says Elizabeth Warren, now a candidate for Senate in Massachusetts, repeatedly questioned Secretary Geithner about HAMP, and Geithner finally responded, saying, “We estimate that they can handle ten million foreclosures, over time… this program will help foam the runway for them.”
This statement revealed that HAMP was designed to extend the time during which banks would incur foreclosure losses. Geithner knew the banks couldn’t absorb too many foreclosures at once, so HAMP was a way to slow the number of foreclosures, not prevent them. Spacing out the foreclosures was a way of giving banks time to stop losses, and increase their wealth through bailouts. It was never intended, according to Barofsky, to prevent homeowners from losing their homes.
The HAMP program also allowed banks to get a few more payments out of homeowners since borrowers were believing in the program, and trying desperately to save their homes. In the end, banks got a few extra payments, and then foreclosed on homeowners anyway.
Instead of helping homeowners, the HAMP trapped borrowers with extended trial payments, no-doc modifications, and eventually unnecessary foreclosures. This also resulted in many homeowners who’d been current in their payments losing their homes because they sought help through HAMP.
Comments
Powered by Facebook Comments
This bailout of the foreclosure criminals must be publicised.Amen.
So, now every time a white man, who happens to be an antagonist of this president, and is against every thing that he proposes, write some unsubstantiated claims, in some book, the irresponsible black so- called journalist, immediately pounces on it, and report it as the gospel. The authors of this article, must be paid stooges of the republican tea party, and should not be given any credence. These black uncle toms, are more dangerous than the Rush Limbaugh, and his ilk.
I do not think so, the program is for big banks only. Kennedy got assassinated because he took the power away from the banks of printing money and high interests rates that the people would have to pay for. This is why political figures with the exception of Ron Paul is are for big banks. The fed has never been audited before while citizens gets audited. That is because if they do you will see where all the money is going to other countries, political figures thus the 1% ers. Every time someone says something bad about the POTUS black people want to make it seem as if it is racism. Well it is not look at what he is doing he pass NDAA which empower the Armed Forces to engage in civilian law enforcement and to selectively suspend due process and habeas corpus, as well as other rights guaranteed by the 5th and 6th Amendments to the U.S. Constitution, for terror suspects apprehended on U.S. soil. h.r. 347 (dismantling 1st amendment) drones, attacking Libya (unconstitutional , impeach now) supporting Israel as the commit apartheid. JP morgan chase bank: $6 billion in losses; botched swap operations; fraudulent financial reports; rate-rigging; deceptive sales practices; manipulation of energy markets. Not held accountable but everyone lost there houses and the banks still get bailed out. Yeah ok look at the big picture it is not about the bi racial status of the POTUS he is also workiing on the 2 nd amendment keep in mind why the 2nd amendment was establish it was because should government become tyrannical any american that posses a gun can destroy government wake up sheeples