Thursday, February 23, 2012 10:01 AM
Victoria,
The Administration is lying through its teeth. This is the latest in the controversy over the use of HAMP funds for the settlement with the banks. Note the headline, then the HUD spokesman statement denying taxpayer subsidy, and oh yeah that little detail about only receiving credit for a portion of the principal reduction (bolded in red). So is the taxpayer picking up the tab for the settlement or not, Mr. President? Why can’t we get a straight answer from the Administration that was going to be the most transparent in history????
Pete
Taxpayers Won’t Subsidize Mortgage Settlement: Administration (The Headline)
“WASHINGTON — The Obama Administration is pushing back against a recent news report that concluded U.S. taxpayers will subsidize the roughly $25 billion mortgage settlement.
In a blog post Wednesday, officials at the Department of Housing and Urban Development argued that there is no taxpayer subsidy of the mortgage settlement.
“For HAMP modifications that do include principal reduction, servicers only receive credit for the portion of the principal reduction that they themselves pay for, not for the portion covered by incentives in the program,” the blog post states.” (Do they or do they not receive credit? Do they receive any funds from HAMP for these modifications? Those are the ultimate questions!)
PS – My commentary is in purple