Geithner to use "Shame" on Mortgage Companies

This is absolutely ridiculous. Once again the Treasury Secretary uses the press for a huge we're doing something really campaign and then says they will use shame to embarrass those lenders not really helping homeowners.

In August, we got the same claim. See The Politics of Shame for more details on how obviously, from bail outs to bonuses to loan shark credit card tactics, financial institutions have no shame.

The only ones who are being shamed are the Obama administration, in particular Tim Geithner.

Last month, an oversight panel created by Congress reported that fewer than 2,000 of the 500,000 loan modifications then in progress had become permanent under Making Home Affordable. When the Treasury releases new numbers next month, it is expected to report a disappointingly small number of permanent loan modifications, with estimates in the tens of thousands out of the more than 650,000 borrowers now in the program

Over a year ago it was well known the Hope Program was Hopeless. Now that some statistics have come out, it seems a whole group of politicians are busy using it as press fodder.

Ask if any of these Political beasts voted for the TARP bail out? Did they introduce any legislation to really reform mortgage modifications? Oops, I guess not.

We only have one small claim by the Treasury that might do something:

The Treasury Department also will wait until reductions are permanent before paying cash incentives that it promised to mortgage companies that lower loan payments.

Right. Of course this comes at the end of 2009. I believe the current projections of forecloses this year alone are 3.2 million.

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What a joke! Geithner and Summers didn't want to cause any pain on Wall Street and mortgage industry. Now, he is trying to cover his ass for failing to help those who really needed the help - home owners.

I'll keep repeating it - we needed debt forgiveness.

A day late and $75 billion short.

RebelCapitalist.com - Financial Information for the Rest of Us.

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it's so absurd they shouldn't get any press

This is the same B.S. recycled (as noted).

Also note Jeff Merkley, who ran literally on "no bail outs period" and squeaked by in the election as a result...his first vote....was more TARP.

What an unethical, yet another liar, politician. Seriously, they ousted a sitting Senator on the promise he would be for the middle class so he voted exactly what Wall Street wants and then introduces some ridiculous thing to force more anti-smoking crap.

So, there he is, quoted saying how bad this is...well, his voting record so far is one of the reasons it's so bad.

At least Alan Grayson, who is a Freshman in the house...he's getting in there and raising hell.

These Freshman and Junior Senators, who were voted in to change this just have no excuse, none.

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No more mortgage mod progress & they want to use shame...

to embarass lenders?
How about something a little more meaningful.
Create some sort of bridge program to help those who have lost a job and have no more mortgage mod options due to the job loss.
Many people are getting new jobs a few months later giving them income again but they have already lost their home or been turned down on their mod.
You can't shame the shameless.

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They have no shame

It's a foreign concept to them. Just like the charade of confirmation hearings for Uncle Ben. Not to worry, nobody takes it seriously.
Frank T.

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Frank T.

No more mortgage companies feel shame or remorse

I wish he could shame them into something, but it's not going to happen. What worries me more is that there are a lot of homeowners that aren't feeling any shame about walking away from their home and defaulting on purpose.
I read the article at Mr Mortgage and several other places about people walking away from their mortgage and home after not getting any help from their lender. Many of them would rather take the hit to their credit than lose money on homes that might not come back in value for years or even decades. No more mortgage they can't afford.

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