Feb 18 2009

Shelby Comments on President’s Housing Plan

U.S. Senator Richard Shelby (R-Ala.), ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, today made the following statement regarding President Obama’s housing plan:

“The President’s plan appears to help those who least need it, and doesn’t help those that do.  The Fannie/Freddie proposal allows underwater homeowners to refinance even if they are not at risk of default.  This will encourage lenders to help those who need help the least which will divert resources from families most immediately at risk of losing their home. The biggest outrage is that the President’s plan actually will use taxpayer money to pay people to do what they are already supposed to do – pay their mortgage.  It also uses taxpayer money to pay banks to do what they should already be doing – modifying mortgages.  This is nothing more than a lender bailout where the American taxpayer is once again being asked to foot the bill.  Once again, I believe our first priority must be to effectively address the problems in our banking system.  Once that is done, we will have built the foundation upon which an economic recovery can be built.”