White House veto threat on home refinance bill

[Tx4obama]

Source: Associated Press

WASHINGTON (AP) -- The White House on Tuesday threatened to veto a Republican bill that would abolish an Obama administration program aimed at helping people refinance homes that are worth less than they paid for them.

The veto threat could be the first of several as House Republicans begin working on bills terminating four administration-backed programs aimed at preventing foreclosures.

The House Financial Services Committee voted last week to terminate the Federal Housing Administration Refinance Program on a 33-22 party line vote. Republicans, who hold the majority in the House, said the program had not worked and was a waste of money, while Democrats said it was part of a drive to help homeowners still reeling from weak housing prices and a glut of foreclosures.

The program began last September and has so far helped 63 so-called underwater homeowners convert their mortgages into more affordable FHA-insured loans, according to Housing and Urban Development Department figures. It is backed with $8.1 billion set aside from the $700 billion federal financial bailout of 2008 - money that would only be spent if one of the newly refinanced mortgages falls into default.

Read more: http://hosted.ap.org/dynamic/stories/U/US_HOUSING_PROGRAM_VETO_THREAT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-03-08-19-27-45

[JDPriestly]

1. Only 63 homeowners have been helped. It's hardly worth vetoing its repeal,

but I'm glad to see Obama stand up for homeowners even if he has his back turned to them as he is standing.

[MGB67deux]

2. As I understand it...

the banksters sat on their hands, just as they did with funds for small business loans.

Then they resorted to trickery by telling people that they had to be in default before any adjustment and refinance could be done.Then they foreclosed.

Got rope?