Unequal And Ineffective

Unequal
The Government’s new mortgage plan does nothing for homeowners who have mortgages that exceed $729,750 but will subsidize loans below that amount. As Bill Apgar, of HUD explained, “It was decided to limit help to the folks who have better than average capacity to adjust.” Apparently, all animals are equal….but some are more equal than others.

Ineffective
Mortgage holders owing more than 105 percent of their house’s value, they do not qualify for refinancing under this plan. Homeowners in the worst markets like Florida, Vegas, Phoenix or California, where values have fallen 30 percent to 40 percent, will get nothing and like it.

Bottom line: the plan is more partial bailout that is neither fair nor effective.