As Look Past the Bailout Blather notes, there are aspects of American Housing Rescue and Foreclosure Prevention Act of 2008 that are welcomed. Especially, key is the White House backing off their threatened veto in opposition to the $4 billion in grants for an emergency neighborhood stabilization fund to local governments to buy and refurbish foreclosed properties. Labeling such assistance a giveway is governmentally irresponsible, when such massive rescuing of communities is required from these man-made hurricanes of unregulated predatory loans.
But more important than being glad some things are being done, we should be concerned that this congressional action will lead to the wrong conclusion in the media that it is sufficient. Alice Chasan’s posting provides a link to the warnings issued by The National Community Reinvestment Coalition in a press release responding to the Housing and Economic Recovery Act (HR 3221). Every Rooflines reader should check it out for the projections of the tsumani of 1.5 million additional foreclosures between now and the time the new legislation will have any impact.
Congress finally acted and the President now won’t veto it. But there is far more to be done before any rescue efforts can be called satisfactory let alone sufficient.