House Debate on Ending HAMP (housing mortgage affordable program)

Today the House is debating the end of the Housing Mortgage Assistance Program,  otherwise know as HAMP.  The debate seems to point out that the current Democrats are desperate to cling to a program that sounded great and works terribly.  Quite honestly they aren’t even getting support from some of their own most liberal supporters.  La Raza, a Hispanic based organization know to be very liberal, has come out against the program while Democrats actually claimed on the floor that the ending of the program is going to unfairly hurt minorities.  (http://www.nclr.org/) This is just an example of our government creating a situation where the financial sector was encouraged to loan money too cheaply due to artificially low interest rates.  In addition to that, the Affordable Housing Act placed requirements upon banks to enter into loan agreements they would not have otherwise done.  To say that this situation was rectifying a problem with the lack of minority homeownership is to ignore the facts.  Even the Democrats on the floor today would only claim roughly 25% of people applying have been helped.  The inspector general of TARP, where the funds come from, Neil Barofsky, doesn’t even support HAMP.  He has released statements that too many people are hurt rather than helped.  (http://www.dsnews.com/articles/tarp-inspector-generals-report-says-hamp-is-failing-2011-01-26)

Why do the democrats insist on holding onto such a failed program?  Perhaps it is because they are afraid to admit the truth.  They forced or encouraged banks to give mortgages people who shouldn’t have qualified and now they have furthered the pain by placing many of those homeowners into a program which can lower their credit scores, cost them back-payments they can’t afford, reduce the equity in their homes, and leave them with less money in the bank and no home.  Perhaps the reality is that we shouldn’t have an artificial interest rate.  Perhaps it isn’t so bad to be a renter. What do we tell the people that didn’t buy a home because they knew they weren’t ready for it?  What do we tell the people who live within their means and pay for their home?  We tell them to fork over money for TARP so that we can change the private agreement and adjust the payments.  We teach our citizens that it isn’t there fault they bought something they couldn’t afford.  We teach our people that they should buy a home with no savings.  We teach our voters that as long as they vote a certain way, they won’t be held accountable for their poor choices.  Democrats rallied against the pain the financial crisis has caused while blaming Wall Street without accepting their own responsibility.  Who funded Fannie Mae and Freddie Mac?  Who allows the Federal Reserve to lead the way to irresponsible loaning practices?  Who placed race ahead of financial qualifications?  Let’s not let the Republicans off the hook either.  They are a leader in meddling with the financial sector.  They too spend our money without wisdom.  They too believe they should use authority they don’t have.  This particular case is against the Democrats but don’t think that the real issue is HAMP.  The real issue is those in Washington thinking they have the right or the ability to orchestrate and regulate our entire financial system.  It doesn’t matter which side of the isle you are on; allowing Washington politicians and their appointed bureaucrats to make decisions affecting our very financial lives has left us with a debt that threatens to crush our country.  When have they served our country well?  Do they even care about the country, or are they more concerned with getting elected again?  I suggest the latter.