Congress doing little to help homeowners, unions charge

[Omaha Steve]

http://www.workdayminnesota.org/index.php?news_6_3601

By Mark Gruenberg
7 April 2008

WASHINGTON - Congressional lawmakers' "rescue package" for homeowners who face losing their mortgages and homes drew a sharp critique from the AFL-CIO as being targeted to builders and banks rather than the homeowners who really need the help.

And the Laborers went even further, issuing a special report analyzing how the Senate-passed subsidies would help those lenders who caused the housing and credit crisis, rather than workers who suffer from it.

The critiques came as the Democratic-run 110th Congress rushed through a $28-billion (gross) package of measures, worked out by Senate Banking and Housing Committee Chairman Christopher J. Dodd, D-Conn., and its top Republican, Richard Shelby, R-Ala. Most of it was at least $6 billion in tax cuts for businesses and billions more in subsidies to new buyers of foreclosed homes.

But the package also authorized — but did not actually dole out — $4 billion to cities and towns to buy, restore and resell foreclosed properties, and $100 million for non-profit groups to counsel homeowners and aid them in avoiding default.

The key Democratic idea, letting bankruptcy judges intervene to rewrite mortgage terms, lowering interest rates and monthly payments so that people could keep their homes, was dumped in the face of twin GOP threats: A Senate filibuster and a veto by President Bush. Senators defeated it 36-58.

That provision would have helped 600,000 people save their homes, AFL-CIO Legislative Director Bill Samuel said. Without the mortgage revision section, "The bill would do little to strengthen the economy for middle class working families," he added.


FULL story at link.