We need a “Freedom from Responsibility Act”

Tuesday, December 9th, 2008 1:48 pm by Neal

(Hat tip: Boortz)

Shocking, just shocking.

Homeowners re-defaulting after getting aid:

Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.

“The results, I confess, were somewhat surprising, and not in a good way,” said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum.

“Put simply, it shows that over half of mortgage modifications seemed not to be working after six months,” he said.

Dugan said based on data collected from some of the biggest U.S. institutions, like Bank of America, Citibank and JPMorgan Chase, home foreclosure starts fell 2.6 percent in the three months ended in September.

However, data which is to be issued by the OCC and the Office of Thrift Supervision (OTS) next week could throw cold water on a push by some U.S. policymakers for loan modifications as the key remedy for the ailing U.S. financial and economic crisis.

Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.

The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.

Regulators speaking at an OTS-housing forum did not provide any explanations for the causes behind the data.

Here’s your explanation, morons: These are deadbeats who had no damned business buying houses in the first place! They took their “bailout” money and bought cigarettes, booze, and lottery tickets. Oh, and they probably upgraded their cell phones, ipods, and TV’s. Go ahead, give them a better deal. Let them re-finance at lower rates. Let them wait 6 months before having to make another payment. They will re-default no matter what you give them. After all, Obama got elected, so these deadbeats know that they don’t have to pay their mortgages any longer. Get with the program!

Time to pass the “Freedom from Responsibility Act”.

This country is now officially being run by idiots. God help us.

Comments are closed.