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Housing and Economic Recovery Act of 2008 Did Not Work |
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By Roberto Garabell
 In late July 2008, Congress passed and the President signed the Housing and Economic Recovery Act of 2008 that included the following provisions: Federal Housing Finance Regulatory Reform Act of 2008, HOPE for Homeowners Act of 2008, and the Foreclosure Prevention Act of 2008. These programs did not accomplish what they set out to do.
Success can mean different things to different parties. For homeowners, success means keeping their house, getting a lower payment, and profiting from its eventual sale. For lenders and holders of mortgages, success means keeping a steady flow of money coming in from previously insolvent debtors. For the government, success means doing something to make angry homeowners less likely to vote them out of office and keep our financial system from complete collapse. As with many pieces of legislation, it is an ugly series of compromises, and ultimately, none of the concerned parties may deem it successful.
In the Savings and Loan disaster of the late 1980s, the government was liable to investors for their losses through the Federal Savings and Loan Insurance Corporation (FSLIC). The government |
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