February 22nd, 2009
07:00 PM ET
6 years ago

Housing secretary defends Obama foreclosure plan

The plan is aimed at folks who are playing by the rules, Housing Secretary Shaun Donovan says.
The plan is aimed at folks who are playing by the rules, Housing Secretary Shaun Donovan says.

WASHINGTON (CNN) - The Obama administration's efforts to help struggling homeowners will aid "responsible" borrowers, not deadbeats or speculators, Housing Secretary Shaun Donovan said Sunday.

President Barack Obama announced the plan Wednesday, saying it will help up to 9 million people keep their homes in a housing market ravaged by foreclosures. But critics, including several leading Republicans and some commentators, said the $75 billion proposal will unfairly help some people at the expense of others.

White House spokesman Robert Gibbs acknowledged Friday that some people who made "bad decisions" might end up getting help under the proposal. But Donovan, Obama's secretary of housing and urban development, told CNN's "State of the Union" on Sunday that "there are no 'flippers,' investor-owners or scammers that are eligible for this program."

"We're going check everybody's income when they come into this program. We're going to make sure that people are paying their bills. And more than anything, we're targeting the folks who are playing by the rules," Donovan said.

The administration's proposal would make it easier for homeowners to afford their monthly payments either by refinancing the mortgages or having their loans modified. And it would vastly broaden the scope of the government rescue by focusing on homeowners who are still current in their payments but at risk of default

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Filed under: Economy • State of the Union
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