February 18th, 2009
12:52 PM ET
9 years ago

Republicans, analysts question Obama's foreclosure plan

President Obama's $75 billion home foreclosure plan would benefit 9 million borrowers.

President Obama's $75 billion home foreclosure plan would benefit 9 million borrowers.

WASHINGTON (CNN) - Even before President Obama unveiled his home foreclosure plan Wednesday afternoon, some Republicans and political commentators questioned how exactly it would work to stave off a crisis plaguing the country.

House Republican Whip Eric Cantor, R-Virginia, along with Minority Leader John Boehner, R-Ohio, sent a letter Wednesday to the president "seeking clarification on six important questions about [Obama's] broad housing proposal," according to a press release from Cantor's office.

Obama unveiled his $75 billion multipronged plan in Phoenix, Arizona, that seeks to help up to 9 million borrowers suffering from falling home prices and unaffordable monthly payments.

But there could be fierce resistance among Republicans and some conservative Democrats on Capitol Hill.

Already, top Republicans want several questions answered, an early sign that Obama may once again face stiff opposition to the plan when it comes before Congress. Last week, not one House Republican voted for his economic stimulus package, and only three GOP senators voted for the bill.

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Filed under: President Obama
soundoff (139 Responses)
  1. Joanne

    This is what is wrong in our country today....there is no legitimate debate. Obama offers a proposal, and it's just 'wrong' says the republicans. Okay, where was your 1000 page stimulus bill? Where's your bill to end the housing crisis? It's too easy an answer to just reject every 'solution' brought to light. You want to have a real debate, then offer a solution other than stay the course. We tried it for 8 years....didn't work, still isn't.

    I am the responsible homeowner who will see no 'tangible' benefits from either the stimulus bill or the proposed legislation. Does it bother me that those who have made bad choice may be rewarded...of course it does. But for the 'responsible' ones....did we also complain when our housing values were skyrocketing? Supply and demand. Mortgages were easy and we all took advantage. Now the tables have turned and we see the imaginary value disappear. The more houses in forclosure, the lower our property values go. But hey, maybe we should just do nothing an complain some more. Seems to be working really well for us so far.

    February 18, 2009 04:53 pm at 4:53 pm |
  2. Sniffit

    @ Rob

    Don't be stupid. $8000 wil average about 6 months of relief per person if it was used solely to pay monthly payments (which it won't be, but we'll set aside comlicated discussion for the adults). That basically amounts to a collection moratorium for half a year, in which time the person can renegotiate their loan so that the principle more accurately reflects the fair market value of the home they bought as opposed to the bubble-inflated home price that was driven up to feed the securities market.

    February 18, 2009 04:54 pm at 4:54 pm |
  3. Lynn

    Wasn't it John McCain who was blithering on on CNN about unless you do something about the home crisis the economy will not improve? When will we hear from Mr Bipartisan himself??

    February 18, 2009 04:55 pm at 4:55 pm |
  4. Sniffit

    Ha, more like GOP = traitors in patriots' clothing.

    February 18, 2009 04:55 pm at 4:55 pm |
  5. was on the fence

    I tried to like obama but I do not believe what he is doing will help, but will actually hurt the US long term, extending the recession and even making it worse.

    I do believe trickledown economics works and anyone who argues it does not and says just look at the last 8 years is not looking hard enough. It does not work when government intervenes. When companies are taxed here they take their business elsewhere, like overseas. That loses jobs. So why would you want to tax them more?

    Look at when government intervened by forcing banks to make bad loans through Fannie Mae, ( a clinton mistake big time). Sure it helped for his presidency but it set up the banks for failure at a future date, 7 years into Bush's presidency. So obama wants to do the same thing again with his mortgage plan. Great for the next couple of years but another fallout waiting to happen.

    The same thing probably will happen with the obama spending plan. It will help for a period of time and then a much worse legacy will be left for the next president. As with clinton, uninformed people will praise obama and criticize the next president who is left with the mess of obama.

    I think history, (the future historians who actually will have the data available to evaluate), will consider clinton and obama two of the worse presidents we've ever had.

    February 18, 2009 04:58 pm at 4:58 pm |
  6. Lisa T

    Rob, Rob, Rob...still bashing I see! What do you propose to fix the ailing economy – other than tax cuts?

    I am a smart liberal! I have a degree, own a viable small business and am smart enough to argue a point without bashing ALL republicans in doing so!

    If Obama's administration spent ZERO money during this next 4 years, would you then deduce that the deficit that we had pre-January, 2009 that are children will be paying was left by Bush? Naw...not likely, you're still listening to Rush, Hannity and the likes.

    February 18, 2009 04:59 pm at 4:59 pm |
  7. sick n tired of CNN moderators

    Get ready for another round of obstructionist, Republican BS!

    February 18, 2009 05:00 pm at 5:00 pm |
  8. Beth

    The Republicans have every right to question everything Obama does, just like you liberals and the Democrats in Congress questioned everything Bush did. Both parties want America strong again, they just different opinions of how to make it happen. People posting here sound very childish and hateful. Grow up and act like adults. My five year-old sounds more mature than some of you people.

    February 18, 2009 05:01 pm at 5:01 pm |
  9. Kristen

    Not all those facing foreclosure are "irresponsible" and "reckless" as all GOP members seem to think. My mother worked for 30 years, never paid a bill late, had her mortgage for 20 years. She got cancer, had to quit her job, and now faces $40,000 in bills from the past year alone. She is in forcelosure. Is she reckless? I was laid off several months ago, have applied for more than 150 jobs, and have gotten nowhere. I have been living off my savings, which any responsible person should have, but this will only last about 3-4 more months. Am I reckless if I go into foreclosure on my condo?
    How can the GOP criticize a plan before it's unveilied? Is this what they've come to? How about rather than say no they offer their own plan. Cantor and Boehner have only had the past 8 years to do something.

    February 18, 2009 05:10 pm at 5:10 pm |
  10. Lorna in Warminster PA

    Why are none of these news media outlets taking issue with Eric Cantor? The TARP plan he pushed for and voted for saw his wifes employer, a bank in Virginia, got 267,000,000 million dollars in the first part of the bailout. He is the biggest hypocrite I've ever seen. Isnt this a serious conflict of interest? She is a high level executive in that bank....not a bank teller. He is disgusting.

    February 18, 2009 05:13 pm at 5:13 pm |
  11. geraldine

    It's pretty tough to fault the Republicans for their 6 questions posed to Obama over his plan (e.g., how to ensure that the 90% of homeowners that pay judicially will also benefit?), but I'll be some folks on this board are about to…

    Becuase, heaven forbid someone ask Obama a tough question and distract him from distributing handouts.

    Does anyone else find it ironic that the government is trying to force lending behavior, to fix the problem caused mandating Subprime lending (Clinton in 1998, gained momentum under Bush, and defended staunchly by Barney Frank and Chris Dodd). Facts, folks.

    February 18, 2009 05:13 pm at 5:13 pm |
  12. Viv, Utah

    How long can you continue to take from those who are responsible and give to those who are not. Sooner or later the penny will drop.

    February 18, 2009 05:14 pm at 5:14 pm |
  13. John

    The republicans have criticism for everything that the President is trying to do to bring an end to this miserable economy.

    What do the republicans offer? Tax breaks to the rich and a question for them is how will this help everybody that's not rich?

    February 18, 2009 05:20 pm at 5:20 pm |
  14. July

    I could not read on .... I had to stop because the first thing that pop into my head when I read

    'House Republican Whip Eric Cantor, R-Virginia, along with Minority Leader John Boehner, R-Ohio '

    beavus and buthead came into mind ........ jajaaaaaaaaaaaaaaaaaaa

    February 18, 2009 05:27 pm at 5:27 pm |
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