The Democrats are proposing a mortgage bailout that would authorize the FHA to guarantee up to $300 billion in new mortgages offered by government-approved private lenders. The new mortgages could at most equal 90 percent of a home's current value.
Only homeowners who have a mortgage-debt-to-income ratio of 35 percent or higher and who entered into a mortgage before January would qualify for the program.
House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, says the millions of individuals who might face foreclosure because of the expanding credit crisis deserve help, even if they made a mistake by borrowing beyond their means.
"There are people who made loans that should not have been made; there are some people that were wrong to take the loans out, some wrong to make the loans. If nothing happens and all those loans go under foreclosure, the economy suffers," he said.
Yes, there are a lot of people who have gotten themselves in a bind with their homeloans. I sympathize with them, but is it the responsibility of people who made the right decisions about living within their means to pay for those who didn't? Maybe I am being to harsh and I know I would want some sort of relief if I was in a bind. However, I just don't think it is right to penalize the taxpayers for bad decisions by both the borrowers and the lenders.
Here are what Republicans are saying...
"You're telling the guy who did it right that he has to help pay for the guy who did it wrong," said Rep. Jeb Hensarling, R-Texas. "When people are struggling to pay for their mortgages, they shouldn't be forced to pay for their neighbors' mortgage.
"I think about 95 percent of America is either renting a home, they own their home outright, or they're current on their mortgage," he said. "So 95 percent of America who's doing it right is asked to help bail out 5 percent of America who probably wasn't doing it right."
I believe the Bush Administration has it right by calling it a "bailout".
I think the Democrats are just contributing to the victim mentality of this country. Personal responsibility is a value that the liberals just don't embrace.
Am I too hard core?
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Boomer
Right Wing Squadron
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