Patti
FOR THE FULL ARTICLE By Arun Gupta
http://www.commondreams.org/view/2010/01/08-9
........A DREAM FORECLOSED
In comparison to the bank bailout, relief for homeowners is limited to a miserly $75 billion under Obama's Making Home Affordable program. As of December, only 31,000 homeowners have received permanent mortgage modifications. The real winners are loan servicers. Of the top 25 participants, 21 were "heavily involved in the subprime lending industry." The parent companies of the lenders, which have vacuumed up more than $21 billion from the program, include Bank of America, Wells Fargo, JPMorgan Chase and Citigroup. Homeowners in the program who don't get permanent help are left with wrecked credit scores while they continue to pay for homes they can't afford, which may be lengthening the crisis. Meanwhile, the number of homeowners with mortgage debt greater than the value of their homes was 23 percent as of September and could peak at 48 percent in 2011. Even modest measures, such as allowing bankruptcy judges to lower mortgages, were abandoned by the Obama administration.
Economist Robert Johnson, columnist Arianna Huffington, and filmmaker Eugene Jarecki, among others, have come up with a new proposal that would allow ordinary people in this country to channel their anger over the Wall Street bailout while also helping invigorate community banking.
MOVE YOUR MONEY
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