No more money for the Mortgage Industry lenders. Explore other options.

No more money for the Mortgage Industry lenders. Explore other options.


Thank you Federal Reserve for releasing another $1 Trillion into the American Economy to provide more money for banks to buy other banks, to pay off other banks, and to give retention bonuses on the pretense that it will reduce mortgages and enable banks to start lending again. The first monies released did not alleviate the credit problems. What makes you think that another Trillion dollars to the mortgage industry is going to do any better. The fallacy is that the Federal Reserve is under the false ideology that if they continue to give money to the mortgage industry that the economy will improve. The premise of the additional infusion of monies is that interest rates will be lowered and homeowners will be able to afford the lower mortgage payment. The issue with the premise is that there are millions of homeowners that are unemployed and no matter how low the interest rate is the homeowner “WILL NOT” be able to make mortgage payments based on their unemployment benefits. In addition, the mortgage industry gives the false impression that they are concerned about the homeowner, when they are the very entities that caused the foreclosure dilemma. Rather than infusing monies into these organizations, the Federal Government needs to switch these homeowners over to the Housing and Urban Development Programs, such as the Section 8 program, for low income homeowners whereby the Federal Government subsidizes part of the mortgage payment and the portion that the homeowner pays is minimal. This would continue until the homeowner became employed again and then the payment would increase in proportion to their income. Utilization of the Housing and Urban Development Programs, such as the Section 8 program, which is a Federal program, American Taxpayers would know that their tax dollars are truly assisting them. The mortgage industry would not be privileged to taxpayer dollars that they can use for any purpose without accountability. There should be more options explored rather than immediately assuming that the only avenue for improving the foreclosure crisis and the problems that homeowners are experiencing is to keep “shoveling” monies into the mortgage industry.
For more information on the Housing and Urban Development Programs, such as the Section 8 program, visit http://www.hud.gov/offices/pih/programs/hcv/homeownership/