Geithner: Gov’t Still Finding Ways to Influence Housing
- Posted on December 16, 2010 at 11:01am by
Jonathon M. Seidl
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WASHINGTON (AP) — Treasury Secretary Timothy Geithner said Thursday the government is trying to keep as many struggling borrowers as possible in their homes in several programs.
Geithner told a congressional oversight panel that although the Treasury Department’s ability to spend new bailout funds for the central foreclosure-prevention effort expired in October, it is running other programs for borrowers in certain situations such as those who are unemployed.
Geithner testified that the housing market remains weak. He said the government is putting downward pressure on mortgage rates through agreements with finance companies Fannie Mae and Freddie Mac. The government has been buying securities backed by mortgages that are issued by Fannie and Freddie.
“The American financial system today is in a much stronger position than it was before the crisis,” Geithner said.
He said that Treasury’s $700 billion rescue program, which came in at the peak of the financial crisis in the fall of 2008, “will rank as one of the most effective crisis-response programs ever implemented.”
The Congressional Budget Office recently estimated that the program will cost taxpayers about $25 billion. Geithner noted that is far below early estimates that it would cost $350 billion or more. And he suggested it could end up costing even less than $25 billion.
Of the total $700 billion bailout, $75 billion was earmarked for mortgage assistance programs, including the central foreclosure-prevention effort known as the Home Affordable Modification Program, or HAMP.
Treasury had the authority, which expired on Oct. 3, to spend up to $30 billion in taxpayer funds on the HAMP program. Only about $4 billion likely will be spent, according to a report issued Tuesday by the oversight panel.
The report said the two-year-old HAMP program won’t reach its original goals and the government should come up with clear, measurable objectives for it. Because Treasury has failed to properly analyze the program, it is nearly impossible to determine whether it is a success, the report said.
The program was designed to help people in financial trouble by lowering their monthly mortgage payments. Homeowners who qualify can receive an interest rate as low as 2 percent for five years and a longer repayment period. The homeowners receive temporary modifications that are supposed to become permanent after borrowers make three payments on time and complete the required paperwork.
Treasury’s original goal of preventing 3 million to 4 million foreclosures under the program has been reduced several times. The oversight panel estimates that the program will prevent some 700,000 to 800,000 struggling borrowers from losing their homes – compared with 8 million to 13 million foreclosures expected by 2012.
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Comments (54)
wash1776
Posted on December 18, 2010 at 9:12amGeitner!! You are a tax cheating moron. You have done enough harm with the housing debacle. WHY DON’T YOU JUST DISAPPEAR AND LEAVE THIS COUNTRY THE HELL ALONE?
Report Post »temple62
Posted on December 17, 2010 at 4:54pmThis headline: GEITHNER: GOV’T STILL FINDING WAYS TO INFLUENCE HOUSING is enough to make most American break out with the swine flu!
Report Post »Stu Pedaso
Posted on December 17, 2010 at 8:39amLiving in horribly cold and lib infested hell called Minnesota. Can I come to Texas or Arizona if you guys decide to leave the union? At least I believe you guys still believe in the AMERICAN way of life.
Report Post »Life, Liberty, and the PURSUIT of happiness.
TexasCommonSense
Posted on December 18, 2010 at 5:49pmConservatives are always welcome in Texas. It would be nice if you could take the place of a liberal here. Yes, we have those too.
Report Post »mrmikejohnson
Posted on December 17, 2010 at 12:07amWe should have let the free market do it’s thing 4 years ago. If we did, we’d be fine now. Let the bad loaners eat their bad loans. Let people who took out bad mortgages get foreclosed on. It’s not rocket science.
They’ll all make better decisions in the future if they see the bad consequences. If you keep bailing them out, they make the same stupid mistakes in the future.
Report Post »shorthanded12
Posted on December 16, 2010 at 10:41pmGeithner: Gov’t Still Finding Ways to Influence Housing <———- = lie, cheat and steal from the honest taxpayers. Get Bank Of America out of the Feds back pocket along with Fannie and Freddie this country would recover from this housing SCAM.
Report Post »dominke
Posted on December 16, 2010 at 6:59pmTim Geitner is a stupid government employee. The housing bubble broke because of the lending created by our CONGRESS. Barney Frank and other pushed or threaten banks to lend to unqualified people. Some of these people had a McDonalds paycheck and bought 500,000 dollar home. Frank and his band of crooks at FANNIE & FREDDIE MAC should be in jail in hell.Our economy fell because of a couple of people.Remember GEITNER was the one who didnot pay his taxes. In the next election remember that Obama,Clinton,Kerry,and other liberals are determine to kill off the USA
Report Post »sdparker
Posted on December 16, 2010 at 4:29pmIn other words, the current administration continues to put America at risk.
Report Post »Mikee T
Posted on December 16, 2010 at 2:59pmGuys and Gals………I worked for a “Non-Profit Org” for about 6 months from November through April of this year…….. I am a career private sector guy and one day decided…”if I can’t beat them, join them”……and solicited this minority run operation, which by the way employed no white people until I got there………anyway……..it was your typical “government model” outfit…..waste waste waste waste….not to mention, very politically connected and I just DIDN”T FIT IN !!! A much higher standard of performance was place upon me immediately and the long and short of it is; I had to resign………Before doing so, I can tell you what I witnessed about the HAMP / TARP and relationship between these big banks and the Feds…….phony phony phony….mendacious….disgusting behavior….one example: I was told by a high ranking official to “back off” on an issue I raised with Indy Mac Bank…….which was “bailed out” / bought up by none other than the FDIC….I was told, after exposing the bank for anomolies on a “pay option arm” on a single mother that I found to be unlawful….to back off…… This is only one story…..I have others….I resigned under intense pressure from my supervisors that didn’t like my style of exposing the truth…. The people that appreciated me were the hundreds of homeowners I was charged with helping, all the while being obstructed from doing so……..The HAMP program ? Run by ex FNMA / FHLMC employees (that’s fannie mae and freddie mac) that couldn‘t give a rat’s @ss if anyone got a mortgage modification…….as it turned out, I DID get some permanent modifications done for people…..and I was the ONLY one that got it done at that non-profit…..did it matter ? No, of course not…. The non-profit was and is only concerned about how they can justify more grant money from HUD and the other criminal agencies out there…it’s disgusting…….and, even though I resigned under pressure….I felt I was entitled to unemployment benefits but the state (take a guess which one?) and non-profit though otherwise….in other words, being a squeaky wheel and trying to do the right things doesn’t matter when you are dealing with “govies” and bureaucrats……and so, I am scrambling now as I believe that I am being “purposely disenfranchised” although that could be considered to mean that I am another one of those “conspiracy theorists” like Glenn Beck……..hey, Glenn, how about a job for Mikee ???? lol…
Report Post »Mikee T
Posted on December 16, 2010 at 3:20pmto add……….when I was a mortgage banking professional…….I always tried to be prudent in my measure and application with regard to putting people in homes…….I concentrated on “full documentation” (mostly FHA) loans and began to realize early on (as far back as 2003) that something was very very wrong with the explosion in real estate values……you see, in order to “justify” qualifying people for mortgages, I had to pull credit, evaluate income, assets and most of all, monthly liabilites, to affirm whether or not someone could afford a given mortgage payment……well, where I did my business (south jersey) the median incomes soon became not so commensuarte with the prices of the homes people were trying to purchase…….consequently, I had to turn down many many people ….but, of course, Johnny and Sally thieving Real Estate Agent would just take them down the road to any number of thieving mortage “brokers” who were just salesmen…plain and simple……they found instrument (mortgage programs) to put these people in and I actually had to start finding part time work “during the real estate boom” ? This is the truth !!! And what was the wind up ? I wound up in trouble just like the rest of the thieving @ricks that caused this meltdown….i.e., the retail thieves…of course, the real engineers of this disaster escaped any personal financial turmoil…you know who I mean right ? Barney Frank, Chris Dodd and the big bankers that they bailed out……….it’s disgusting to me…I have an “insiders account” of what really happened and because I was prudent in my measures did it help me personally ? No….do I seem angry ? Do you blame me ? On top of all of this…..there is no work in this country now….especially for a middle aged white displaced male…..Oh well, I still have my belief system and prayer….
Report Post »mytwocents
Posted on December 16, 2010 at 2:51pmAny guesses on how Dick voted.
Report Post »mytwocents
Posted on December 16, 2010 at 2:50pmDick wants to barrow $10.00. Jane has $10.00. Gov wants Dick to be able to barrow the $10.00 so even though Jane doesn‘t want too lend it to Dick Gov says it’s for the good of the country. She doesn’t need the $10.00 and she probably cheated someone out of it anyway. Gov takes $10. from Jane and lends it to Dick. Dick pays back $10. with interest. Gov takes out administration costs, just a little is lost in the shuffle and Jane is paid back $8.00. Success.
Report Post »pamela kay
Posted on December 16, 2010 at 2:44pmDid anyone else notice that he used the word “CRISIS”? I am sure that they are ready to step right in and take advantage of it, It’s going to be a big one. Carefully orchestrated to bring us to our knees. I have a feeling that there will be a combination of many crisis that they think will overwhelm us to a point that we will cave in. Their mistake is underestimating our devoted love for our country, our pride, and our spirit. They only make us stronger and more determined to expose them.
Report Post »bigdaddybernie
Posted on December 16, 2010 at 2:40pmIt’s the criminal …..NOT the crime……..or is it the other way around………….maybe it’s both………..that it BOTH !
Report Post »Susan Harkins
Posted on December 16, 2010 at 1:36pmTimothy Geithner = TREASON
Report Post »EqualJustice
Posted on December 16, 2010 at 1:24pmLiberal LOGIC.. find yourself in a hole? KEEP DIGGING.
Report Post »RightPolitically
Posted on December 16, 2010 at 1:22pmGeithner is right up there alongside Biden in my opinion. Both are JACKASSES!
Report Post »Dustyluv
Posted on December 16, 2010 at 9:04pmQuit insulting Jackasses!
Report Post »Texas_Tip
Posted on December 16, 2010 at 12:47pmTreasury Sec. Geithner is just whistling as the can gets kicked down the road. Agreed there @Ghost, unless the system is flushed we will continually have… “House of the Living Dead”.
My new bumper sticker….”AM I PAYING YOUR MORTGAGE?”
Cheers,
Report Post »Tip
Gas137
Posted on December 16, 2010 at 11:50amSurely there is more to this than we the people know. We may have been closer to economic collapse than we thought, and desparate measures may have bought us some time. There haven’t been riots in the streets, yet.
Report Post »mtnclimberjim
Posted on December 16, 2010 at 11:40amFred and Fan should have been foreclosed on. Gov lies,lies.lies
Report Post »stopprintn
Posted on December 16, 2010 at 11:22amWhy do I not trust a thing these ppl. say ?
Report Post »libertyordeath87
Posted on December 16, 2010 at 11:18amWhat ever you say Timmy. Do you actually believe the crap that spews out of your hole, or are you just mouthing what was put in front of you? You really should resign and go to the Island of Misfit Toys and become the dentist you always wanted to be.
Report Post »Cobra Blue
Posted on December 16, 2010 at 11:23amLand of Misfit Toys…LOL! I remember that from the old Rudolph the Red Nose Reindeer holiday cartoon when I was a kid…..LOL! (excuse me while I get up off the floor from laughing) …Perfect LibertyorDeath87….For the record I’ll choose liberty. From my cold dead hands. Merry Christmas.
Report Post »WeTheHomers
Posted on December 16, 2010 at 1:08pm– Rudolph’s Misfit –
Report Post »Why is Tim such a misfit
He can’t even file his tax s#$t
You can’t fire him thats it
Seems he doesnt fit in
TexasCommonSense
Posted on December 16, 2010 at 11:13amGovernment intervention had a lot to do with the housing crisis. Mortgage lenders knew Fannie and Freddie would buy their loosely given loans, relieving them of their toxicity. If people are shielded from the consequences, of course they’re going to take more risks, even to the point of being reckless. Yet another example of government failure. I feel this one was intentional though.
Report Post »untameable-kate
Posted on December 16, 2010 at 11:50amI’ll see your comment and raise, governent intervention had Everything to do with it.
Report Post »TexasCommonSense
Posted on December 16, 2010 at 1:16pmThere was a lot of greed with private lenders, too. Don’t get me wrong, I love capitalism. I just have to be honest. We’re on the same page, Kate.
Report Post »myfamily04
Posted on December 16, 2010 at 11:10amI know of a few million families that can use a small percentage of what they are flushing away!!!
Report Post »This WH admin. is pathetic!
Hugie 59 PA
Posted on December 16, 2010 at 11:10am“The American financial system today is in a much stronger position than it was before the crisis,” He’s living on another planet. We’re still spending and we still can go the cliff. Stop the lame duck session of Congress from spending, NOW!
Report Post »Cobra Blue
Posted on December 16, 2010 at 11:09amLot of verbage to simply say we are paying the mortgages of the low incomers so they can remain in government sponsored mortgages. Part of our planned wealth distribution program. Thank you and Merry Holiday Winter Time Season….signed Little Tiny Tim Geithner
Report Post »The American
Posted on December 16, 2010 at 11:54amThat would be little tiny tim the tax cheat!
Report Post »Lantern
Posted on December 16, 2010 at 11:57amI have been paying my mortgage for the last 25 years. Will someone help me? Hell no, I am the wrong color. Call it what it is, Tax-cheat, reparations, redistributions. If you are too stupid to get a job, know that you cannot afford a house, live unresponsibly, there’s a safety net for you in the government. Are there any government programs to teach people how to live responsibly and become productive citizens?
Report Post »Cliff
Posted on December 16, 2010 at 1:41pm“Thank you and Merry Holiday Winter Time Season” I love it!!! LOL
Guys there is a simple solution… this is my business… take your money out of the stock market (11505.64 <– you don't think that is another set up?) and buy houses right now… we all know that we will overcome this market and rebound! When that happens real estate will boom in value like it always has! I teach people "HOW" to buy in this market… you "MUST" know how to buy or real estate does not make sense! I would say that 85% or possibly more of the Realtors out there do not know how to properly invest in real estate. I have in 18 years only met a handful that really get it…
If you buy right and have the knowledge of what your exit strategies are and what to do to monetize the property, you can out perform most all other investment vehicles every time… Geithner has no clue what to do to make this market recover…
I don't believe that saving the real estate market is what his intentions are.
Several of the negatives I have heard "What if the markets don't recover?", or "What if real estate is taken over by the government and home ownership is lost?", or "What if the government completely takes over like Venezuela?". Trust me if those things occur we will have more problems then worrying about the money we lost on our investment property. I just don't think "We the people" are going to allow a communist take over of our GREAT republic… we are waking up…
One thing Glenn Beck has given me through out the last few years is Hope.. I have tremendous Faith that we will overcome this debacle… EXPECT miracles! But I assure you they wont come from Washington…. It will be places like Wilmington!
Oh and merry Christmas, Happy Hanukkah!
Report Post »TXPilot
Posted on December 16, 2010 at 11:07amTranslated: We have thrown lots of money down a hole and we intend to do even more of it.
Anyone out there getting tired of struggling to feed their families and pay their bills, while having to watch our money being pissed away by the truckload?
Report Post »tower7femacamp
Posted on December 16, 2010 at 11:14amyou mean the Rothschilds ?
Report Post »untameable-kate
Posted on December 16, 2010 at 11:15amI am absolutely disgusted. Too bad Az, Tx and a few other states can’t get together and just seced. from this mess.
Report Post »untameable-kate
Posted on December 16, 2010 at 11:16amsecede, duh.
Report Post »GhostOfJefferson
Posted on December 16, 2010 at 11:17amIf the market is not allowed to self correct, then it will continue to get worse. The correction will come of course, eventually, and all of these so called good intentions will end up hurting people in ways that are much worse than if the correction had happened when it was supposed to.
It’s basic economics. Somebody as educated as Geithner knows this of course, even if he won‘t admit it or claims that it’s incorrect. I can only deduce then that he is bent on harming people.
Report Post »Rev. WC
Posted on December 16, 2010 at 11:22amHey Tex, I am tired of tax cheat Geithner, Bernanke, Obama, Bite me, Reid, Pellosi, ABC, NBC, CBS, MSMBC, CNN, IRS, ACLU, CIA, FEMA. Fannie Mae, Freddie Mac,Homeland Security, Democrats, Republicans, State Government, County Government, City Government!! Hallelujah! Where’s the Tylenol!
Report Post »untameable-kate
Posted on December 16, 2010 at 11:28amThats right GHOST, alot of economists have said flat out that the economy would be in much better shape by now if the government would BUTT OUT.
Report Post »guyperram
Posted on December 16, 2010 at 11:43amIf bull—- was feathers, we would all be able to fly.
Report Post »poverty.sucks
Posted on December 16, 2010 at 11:44am“will rank as one of the most effective crisis-response programs ever implemented.”
Treasury has failed to properly analyze the program, it is nearly impossible to determine whether it is a success, the report said.
And how do we measure success?
Report Post »TXPilot
Posted on December 16, 2010 at 11:48amHey untameable-kate, there are actually a huge amount of people down here in TX who are seriously talking secession. Theres even a petition movement underway to have the legislature vote on a non-binding resolution to consider it, in the event we just can’t take Washingtons crap anymore. I honestly never thought I would see the day that it would be a true possibility….even if it’s highly unlikely.
Report Post »snowleopard3200 {mix art}
Posted on December 16, 2010 at 11:58amThe American financial system today is in a much stronger position than it was before the crisis,” Geithner said.
Translation: The Government does not get the fact of letting economics take over and getting the heck out of the peoples way and life as much as possible.
@The Blazers
Succession from the US – symbolically passed in resolutions, would be a great statement to the DC gurus of idiots and crooks inc. The one danger lay in the administration using it as another justification to crack down farther, faster and harder than they now are.
I am awaiting the time when armed troops are sent to the border states for cracking down on the people of AZ, for some kind of ‘threats to the national security of the USA.’ Then we will see just how far they are prepared to cross the line, and if need be, I will stand against them first.
If I fall, so be it.
Report Post »Polwatcher
Posted on December 16, 2010 at 12:05pmIt has been reported that on average, our Washington criminals are getting 10% kickback on the money they “throw” away on earmarks. On the surface earmarks may be legal theft but underneath they are criminal activity with criminal intent. Interest rates WILL go up some time on our national debt and when they do we are broke…with a total collapse of our currency.
Report Post »TexasCommonSense
Posted on December 16, 2010 at 1:21pmI would truly hate to see Texas succeed; it would greatly weaken our country. However, I’m convinced we could spend our tax dollars, and run an independent republic, far better the whack-jobs in Washington. If our tax dollars go to bailout California directly, that may push me over the edge!
Report Post »Dustyluv
Posted on December 16, 2010 at 1:49pmGive me one good friggin’ reason we should be influencing ANYTHING! Let it fail!!!
Report Post »Marcobob69
Posted on December 16, 2010 at 2:39pmWhy isn’t this tax cheat in jail where he belongs, right next to “the honorable(sic)” Charlie Rangel and Ben Bernanke!!! I think one of the first things the new Congress should do is AUDIT THE FED from “top down, to bottom up, and inside out”, just like Van Jones says!
Report Post »TexasCommonSense
Posted on December 16, 2010 at 4:55pmBecause, somehow, they’re above the law.
Report Post »MeteoricLimbo
Posted on December 16, 2010 at 9:05pm@txpilot, tower7femacamp
Report Post »perhaps a nice subtle Mouton Cadet’
nptden
Posted on December 16, 2010 at 9:07pmCUT TO THE CHASE: when will they bring charges against Freddie and Fanny, Barney Frank…Dodd..Countrywide and Acorn????? Brother Holder is sure slow looking into this stuff. Oh and don’t forget the Wall street dudes also….
Report Post »wheredoesthemoneylead
Posted on December 17, 2010 at 9:57amI agree with Tower! The Rothchilds are doing this through Swiss banking secrecy laws! Beware the money changers!
Report Post »