In his weekly radio address this week President Obama pointed a finger at the US Congress for ignoring a $5-10 billion plan he proposed last February designed to help more American homeowners who are underwater or upside down on their mortgages. Here is what the president said:
Back in February, I sent Congress a plan to give every responsible homeowner the chance to save about $3,000 a year on their mortgages by refinancing at lower rates. It’s a plan that has the support of independent, nonpartisan economists and leaders across the housing industry. But Republicans in Congress worked to keep it from even getting to a vote. And here we are — seven months later — still waiting on Congress to act. This makes no sense. Last week, mortgage rates were at historic lows. But instead of helping more and more hardworking families take advantage of those rates, Congress was away on break. Instead of worrying about you, they’d already gone home to worry about their campaigns.
The move by the president was largely symbolic and political in nature because there is no chance the congress will look at any such ideas prior to the November elections. Last February the congress rejected the idea because of the large price tag it came with. There is no indication right now that the stance of the GOP led congress would change even if President Obama were re-elected. But of course circumstances in Washington can change quickly as well.