|Throw the Bums Out — All of Them!Senate Tycoons Kill Mortgage Aid for Main Street|
|Written by Michael Collins|
|Friday, 01 May 2009|
Page 1 of 2
The Senate Millionaires turned down even limited mortage assistance to those facing foreclosure. The magic Democratic majority in the Senate could produce only 45 Yea votes while 51 voted Nay. Michael Collins goes behind the scenes of another rigged defeat or the interest of the citizen brought to you by inept leaders.
May 1, 2009 – Washington, DC (electionfraudnews.com) – The United States Senate took a swipe at the spirit of May Day in a spectacular show of callous indifference when it voted down a bill to provide limited assistance to citizens at risk for losing their homes. The final vote was 45 in favor, 51 opposed to Senator Richard Durbin's (D-IL) mortgage assistance bill. The original version of the bill covered some but not all of those requiring assistance. The final version was even more restricted. It applied to only homeowners currently in foreclosure as a result of actions prior to the start of 2009.
While their avarice knows no bounds, their memory suffers.
Apparently these multimillionaire aristocrats of the Senate "gentlemen's club" haven't been watching the news. The International Monetary Fund declared that the United States is in a depression almost three months ago. Delinquency and foreclosure rates around the country are rising at spectacular rates. Unemployment has jumped by 3.3 million in the last five months. Economic growth has declined at a rate of 6.3% in the first quarter of 2009.
What part of economic crisis can't they understand? Apparently all of it.
Memo to stingy Senators: Workers and their families are in serious trouble or about to be in trouble. That means they lack the money to pay for their homes (also known as shelter, a basic human need). These citizens did nothing to bring on this crisis.
You, the members of the Senate, are largely to blame and you know it.
One of the most revealing remarks came from Democrat Ben Nelson (D-NE), who said:
“Do I want to have my rate go up so that somebody else might be able to cram down [their mortgage payment]?” (Associated Press, Apr. 30, 2009)
Nelson has never been regarded as the sharpest tool in the shed but he's set a new standard for ignorance with this remark. Nelson was worth at least $7.0 million as of reporting in 2008. Obviously he needs to skimp on every penny to stay afloat. He'll offer no breaks for financially strapped citizens on the brink of ruin even if they are in trouble as a result of his support of Wall Street welfare. The bill would have no impact on his or anybody else's mortgage rate unless they qualified for help. In those cases, the rate would go down.
The Durbin bill offered a reasonable change in bankruptcy law that would allow those in foreclosure to ask (simply ask) bankruptcy judges to invoke a "cramdown." In that process, the bankruptcy court would set a lower interest rates and longer terms on loans. This takes the case out of foreclosure and allows citizens to keep their homes and the lets banks collect the money owed at a lower rate over an extended period. (See this for a real cramdown to benefit all citizens)
The Durbin bill provided limited options since it presumed that homeowners at risk had the money to get in bankruptcy court; that the courts would be able to handle all those in need; and that the judge would accept the request for a cramdown to keep people in their homes. But the bill might have helped as many as 1.7 million homeowners.
Even with those limitations, Sen. Durbin was forced against the wall and had to negotiate the bill to a lower level of protection. The final bill rejected by the Senate. Associated Press reported: "The latest proposal would have restricted eligibility to homeowners already in foreclosure whose lender had not offered better terms. Homes would also have to be worth less than $729,000 and apply to mortgage loans originated before 2009." Apr 30, 2009
Durbin's last stand would have provided protection some homeowners but now there's no protection for anyone.
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