Republicans to homeowners – drop dead

In their zeal to destroy unions in America, Republicans haven’t dropped their other plans.  They have something for everyone, union member or not.  Dana Milbank of the Washington Post writes about Congressional Republican moves to eliminate government oversight of those banks who created the sub-prime mortgage mess and the subsequent foreclosure crisis.

As Milbank points out in his article, “(Since) banks quickly resell mortgages, they don’t much care how the loans perform; their job is to extract the maximum in fees.”  This is why they gave out loans that were likely to lead to foreclosure, and, to quote Milbank again,

This is how we wound up with the robo-signing scandal, in which servicers erroneously forced homeowners into foreclosure. This, too, is why there has been an epidemic of misapplied payments, bogus fees and mismanagement of escrow accounts for tax and insurance.

Republicans are aiming to repeal the Home Affordable Modification Program, which was set up to assist homeowners who were loosing their homes to foreclosure (often due to bank  incompetence or malfeasance) In another move to reward the guys who helped bring on our world-wide recession, Republicans are trying to strip funding from the Consumer Financial Protection Bureau, a new agency with the potential to halt bank abuses.



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