President Obama wants to redistribute money from taxpayers to people with underwater homes in a principal reduction scheme. In order to do it, he is unethically putting pressure on an independent regulator who is not abiding by his demands.
Ed DeMarco, a Bush appointee, is the Acting Director of the FHA. Mr. DeMarco is the conservator of Fannie Mae and Freddie Mac, appointed in 2008. He sees his job as protecting the US taxpayer and has held on despite constant assaults by the Obama administration and his minions.
He testified before the United States House of Representatives Committee on Financial Services on March 19, 2013 to loud protesters demanding some of the principal on their mortgages be paid and accusing DeMarco of “kicking me out of my home.”
The Progressives marshaled their forces to attack him during his testimony.
The Progressives led by Obama want the FHA to pay off some or all of the principal on underwater homes throughout the nation and they don’t want purchasers to have to pay for costly insurance, insurance which protects against their failure to pay their mortgages.
Back in October, the WSJ carried a story about the pressure Ed DeMarco was under as the acting director of the Federal Housing Finance Agency. Obama has been trying to force DeMarco out because he stands in the way of the Obama plan to force banks into forgiving some homeowners’ mortgage debts (with the losses to be foisted on the taxpayer).
It is unethical but not illegal for the White House to put pressure on an independent regulator like DeMarco but that doesn’t stop the White House.
Obama wants to forgive the loans to redistribute wealth. It would be a mega stimulus without having to go through Congress.
De Marco is a white collar warrior who has taken on the establishment and it is he alone who stands between Obama and more reckless redistribution.
Obama hasn’t given up on eliminating DeMarco who won’t play Chicago ball and has enlisted progressive groups such as MoveOn’s help to remove DeMarco as an obstacle to his planned spending spree.
This email from October is similar to the emails I received last month before Mr. DeMarco testified except now the losing entities, Fannie and Freddie hold 90% of the mortgages:
Dear MoveOn member,
President Obama could help twelve million homeowners struggling to pay their mortgage.
But the president needs to hear directly from us.
Here’s the story: Fannie Mae and Freddie Mac hold 60% of mortgages—but the agency that oversees them is run by Bush appointee Ed DeMarco who refuses to allow underwater homeowners to adjust their mortgages to reflect the true value of their home.
Homeowners are struggling to make ends meet. And helping them not only means saving their homes, it will also stabilize the market and help get the economy back on track for everyone.
President Obama has the power to replace DeMarco and make sure Fannie and Freddie provide relief to the millions of Americans struggling with mortgage debt.
That’s why on Thursday, March 15—the same day the Senate banking committee meets in D.C. to discuss the fate of homeowners—we’re organizing big rallies at Obama for America campaign offices around the country. We’ll tell the president: We’re sinking in underwater mortgages—throw the 99% a lifeline to keep us in our homes. In communities without OFA offices, we’ll rally in front of Wall Street bank branches and homes threatened by foreclosure to let the public and the media know that the 99% is standing up to save our homes.
Will you host a Save Our Homes rally on Thursday, March 15?
Yes, I can organize an event!
In late January, MoveOn members organized events at OFA offices calling on President Obama to order a real investigation into Wall Street banks. Just days later, the president did just that! We know that when Obama voters and volunteers get together, the president listens.3
Now, we need him to step up to help struggling homeowners. We’ll support him in taking bold steps—from demanding that Fannie and Freddie readjust mortgages, to replacing anyone who continues holding back the housing recovery.
Can you host a rally in Commack to ask the president to save our homes?
Click here to host!
Hosting an event is powerful and easy. Once you sign up, you’ll get the petitions from MoveOn members and all the materials you’ll need for a successful event.
Thanks for all you do.
In March 2012 and again in October 2012, Obama attempted to force banks to forgive some of homeowners’ mortgage debt, foisting these losses on the taxpayer. President Obama continues to push for this and for lower mortgage approval standards.
Obama would lower the principal by plundering Fannie Mae and Freddie Mac yet again. Fannie and Freddie now control over 90% of the country’s mortgages and have their hand permanently in the taxpayer pocket -they have an ongoing bailout.
It would be the grandest Stimulus of all. This new housing bailout (called “principal write-downs”) would add even more debt to taxpayers who already absorbed $141 billion in losses incurred by these housing giants.
This move by Obama would allow him to put through a Stimulus without having to go through Congress. Mr. DeMarco, however, won’t cooperate.
In October of last year, Mr. DeMarco told WSJ reporter, Kimberly Strassel, that when it comes to principal forgiveness, there is no “upside” to taxpayers—the lenders lose whether the borrower fails or succeeds. “If Congress wants to appropriate money” to pay for the program, “that changes the calculus.” Until then, he doesn’t view principal forgiveness as within his “statutory mandate.”
Obama wants DeMarco out of the way as a result. Obama tried to put another nominee up for the job, the Republicans balked, and the nominee was pulled. Next, Mr. DeMarco was assaulted by no less than 17 House Democrats who demanded he step out of the way. Then, no less than Larry Summers was unleashed on him, accusing him of single handedly preventing an economic recovery. Immediately after, another 19 Democrats pushed for his dismissal.
The White House is not supposed to put pressure on an independent regulator, in fact, this behavior is an abuse of our system, but that didn’t stop Obama from putting intense pressure on DeMarco to get his (Obama’s) update to the failed Home Affordable Refinance Program, which makes it easier to refinance Fannie and Freddie mortgages.
The attacks have been and will continue to be ongoing. DeMarco continues with great courage.