February 11th, 2009
02:38 PM ET
11 years ago

Heat on for foreclosure fix

NEW YORK (CNNMoney.com) - A day after Treasury Secretary Tim Geithner said it would be a few weeks before he unveils a solution for the housing crisis, regulators and lawmakers pressed financial institutions to suspend foreclosures until the plan comes out.

Geithner, who laid out a broad overview of the Obama's administration's plan to attack the financial meltdown, said Tuesday that the federal government would commit $50 billion to preventing foreclosures by reducing monthly payments. Details would be forthcoming, he said.

Until that loan modification plan is released, foreclosures should be halted, some say.

"I would ask all of you now to please make sure that we have a moratorium in effect," Rep. Barney Frank, D-Mass., told top bank executives at a hearing Wednesday. "It would be until we get that program, and until you know if people can qualify. Having someone suffer foreclosure because two weeks hadn't gone by for this program would be unacceptable."

Full story

Filed under: stimulus plan
soundoff (17 Responses)
  1. Mari

    Unfortunately, MANY people who are foreclosing now bought homes they could not afford.

    However, there are others who through no fault of their own are foreclosing and those SHOULD BE HELPED.

    One way to help people is to FREEZE A.R.M.S. whose interest rates will go up, soon.

    Another is to allow people to refinance on homes which have lost their value!

    February 11, 2009 03:16 pm at 3:16 pm |
  2. Jenifer

    Get Geithner out of office, PLEASE!!!!!

    He isn't helping and his reputation with the tax problem is just hurting the party's credibility. Doesn't the president see this?????????

    February 11, 2009 03:17 pm at 3:17 pm |
  3. P

    Why is no one speaking about the 10,000 lb gorilla in the room, THE INTEREST STRUCTURE???? Why should a $100,000 cost $300,000 over the life of the mortgage???? What is wrong with this picture????

    February 11, 2009 03:34 pm at 3:34 pm |
  4. Diane Dagenais Turbide

    This needs to be done!

    February 11, 2009 03:38 pm at 3:38 pm |
  5. Latte Sipping Leftie

    Well 50 billions dollars doesn't sound like enough. The housing crisis is the root of this economic turmoil. Foreclosures need to be halted!

    February 11, 2009 03:47 pm at 3:47 pm |
  6. J.P.

    Hells bells, what good is a foreclosure fix, if we haven't fixed the ridiculous laws and policies that led to this mess in the first place?

    No need for a foreclosure fix if Congress is not willing to repeal the 1977 Community Reinvestment Act. Lending institutions should never have a government gun held to their heads, legally mandating banks engage in fiscally-unsound mortgage lending.

    "Fair lending standards" are not fair to those who are left to pick up the tab after millions and millions of unqualified borrowers default on loans they should never have been given in the first place.

    February 11, 2009 03:50 pm at 3:50 pm |
  7. pete

    Your story doesn't mention the fact that the lawmakers laughed at and mocked the administration when they delivered an update to them yesterday.

    So the very people who approved the nominiation of the tax cheat Geithner because he was supposedly the only man for the job, now openly mock the man they approved just a few days ago.

    Does anyone hear the same circus music that I hear?

    February 11, 2009 03:55 pm at 3:55 pm |
  8. Ray Ray

    What makes ANYONE think this bozo is going to have a plan anytime soon? It took him YEARS to figure out his own tax problems!

    Time to step down, tax-cheater!! Do the right thing like Tom Daschle did and go away.

    February 11, 2009 03:55 pm at 3:55 pm |
  9. Ms. B in California

    Now this is an idea that might work.. How about someone actually try and save the people and not the banks?

    February 11, 2009 04:00 pm at 4:00 pm |
  10. Hammer

    What details?
    This money is headed straight to Swiss bank accounts.

    February 11, 2009 04:04 pm at 4:04 pm |
  11. mb

    Instead of giving money to the banks, I think the government should give each person $1,000 dollars a month for six months for housing. This way everyone can choose to refinance their homes or not, and others would have money for rent. This helps to take in account for rising utilities and property tax costs.

    February 11, 2009 04:18 pm at 4:18 pm |
  12. Joe in NJ

    "One way to help people is to FREEZE A.R.M.S. whose interest rates will go up, soon. "

    No, because most of the people who have an ARM are the irresponsible ones who couldn't afford the home they bought in the first place and helped us get into this mess. Let's only help the responsible people who because of circumstance (like a job loss) are now having financial difficulties.

    February 11, 2009 04:28 pm at 4:28 pm |
  13. Jacque Bauer

    WHY is Barney Frank NOT in jail or being investigated for causing the largest financial meltdown in world history?

    February 11, 2009 04:31 pm at 4:31 pm |
  14. Fan of Common Sense

    People, the only fix is to let THE FREE MARKET DEAL WITH THE PROBLEM! Let the banks that made the bad lones fail, and let the morons that took the loans they couldn't afford get kicked out in the street. That's how it's supposed to work. PROBLEM FIXED!!

    February 11, 2009 04:35 pm at 4:35 pm |
  15. WELCOME TO THE OBAMA SHOW!!!!!!!!!!!!



    February 11, 2009 04:54 pm at 4:54 pm |

    As long as we keep giving all this money to the banks, they will keep holding their meetings at such places as Venetian Las Vegas, BAD IDEA!

    February 11, 2009 07:22 pm at 7:22 pm |
  17. Once you vote Black

    Where is PUMA when you need them?

    February 11, 2009 07:35 pm at 7:35 pm |