President Obama Speech | We were hurt badly by the irresponsible actions of buyers who knew they couldn’t afford them

If you have anything in arms length that is breakable, I suggest you move it before you read the presidents speech below…

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THE WHITE HOUSE

Office of the Press Secretary

February 1, 2012

 

Remarks of President Barack Obama – As Prepared for Delivery

Helping Responsible Homeowners

Falls Church, Virginia

February 1, 2012

 

As Prepared for Delivery –

 

Hello, everybody! It’s good to be here. Thank you for having me.

 

Last week, in my State of the Union Address, I laid out my blueprint for an economy that’s built to last. Don’t worry; I’m not going do the whole thing again this morning. It’s a blueprint that puts a new focus on restoring what have always been our greatest strengths. American manufacturing. American energy. The skills and education of American workers.

 

And most importantly, the American values of fairness and responsibility.

 

We know what happened when we strayed from those values over the past decade – especially when it comes to the massive housing bubble that burst. Millions of families who did the right and responsible thing – who shopped for a home, secured a mortgage, and made their payments each month – were hurt badly by the irresponsible actions of others. By lenders who sold loans to people who couldn’t afford the mortgages; buyers who knew they couldn’t afford them; and banks that packaged the mortgages up and traded them to reap phantom profits.

 

It was wrong. It triggered the worst economic crisis of our lifetimes. And it has been the single biggest drag on our recovery from a terrible recession. Crushing debt has kept millions of consumers from spending. A lack of building demand has kept hundreds of thousands of construction workers idle. The challenge is massive in size and scope, and economists can tell you how it’s affected all sorts of statistics, from GDP to consumer confidence.

 

But what’s at stake is something more important than just statistics. It’s personal. I’ve been saying this is a make-or-break moment for the middle class. And this housing crisis struck right at the heart of what it means to be middle class in America: our homes. The places where we invest our nest eggs, raise our kids, plant roots in our communities, build memories. We need to do everything in our power to repair the damage and make responsible families whole.

 

Now, the truth is, it will take more time than any of us would like for the housing market to recover from this crisis. Home prices started a pretty steady decline about five years ago now. And government certainly can’t fix the entire problem on its own. But it is wrong for anyone to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom. I refuse to accept that, and so do the American people.

 

There are more than 10 million homeowners across the country right now who, because of an unprecedented decline in home prices that is no fault of their own, owe more on their mortgages than their homes are worth. Here in Falls Church, home values have fallen by about a quarter from their peak. In places like Las Vegas, more than half of all homeowners are underwater.

 

It will take a while for those prices to rise again. But there are actions we can take, right now, to provide some relief to folks who’ve been making their payments on time.

 

Already, the housing plan we launched a couple years ago has helped nearly one million responsible homeowners refinance their mortgages and save an average of $300 on their payments every month. I’ll be honest – it didn’t work at the scale we’d hoped. Mortgage rates are as low as they’ve been in half a century, and when that happens, homeowners usually flock to refinance their mortgages. But this time, too many families haven’t been able to take advantage of the low rates. Falling prices locked them out of the market. So last year, we took aggressive action that allowed more families to participate.

 

Today, we’re doing even more. I am sending Congress a plan that will give every responsible homeowner in America the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates. No more red tape. No more runaround from the banks. And a small fee on the largest financial institutions will make sure that it doesn’t add to the deficit.

 

I want to be clear: this plan, like the other actions we’ve taken, will not help the neighbors down the street who bought a house they couldn’t afford, then walked away and left a foreclosed home behind. It will not help those who bought multiple homes just to speculate and make a quick buck.

 

What this plan will do is help millions of responsible homeowners who make their payments on time but find themselves trapped under falling home values or wrapped in red tape. If you’re ineligible for refinancing just because you’re underwater on your mortgage, this plan changes that. You’ll be able to refinance at a lower rate, saving hundreds of dollars a month you can put back in your pocket. Or you can choose to use those savings to rebuild equity in your homes – which will help most underwater homeowners come back up for air more quickly.

 

To move this part of the plan, we need Congress to act. But we’re not just going to wait for Congress. We’re going to keep building a firewall to prevent the same kinds of abuses that led to this crisis in the first place.

 

Already, we’ve set up a special task force I asked my Attorney General to establish to investigate the kind of activity banks took when they packaged and sold risky mortgages; it’s ramping up its work. We are going to hold people who broke the law accountable and restore confidence in the market. We are going to speed assistance to homeowners. And we are going to turn the page on an era of recklessness that hurt so many hardworking Americans.

 

Today, I’m also proposing a Homeowners Bill of Rights – one straightforward set of commonsense rules of the road that every family knows they can count on when they’re shopping for a mortgage. No more hidden fees or conflicts of interest. No more getting the runaround when you call about your loan. No more sneaking fine print under the noses of young families who don’t know better. New safeguards against inappropriate foreclosures. New options to avoid foreclosure if you’ve fallen on hardship or a run of bad luck. And a new, simple, clear form for new buyers.

 

Think about it. This is the most important purchase a family makes. But how many of you have had to deal with overly complicated mortgage forms with hidden clauses and complex terms? This is what a mortgage form should look like. Now that our new consumer watchdog agency is finally running at full steam, they can move forward on important protections like this new, shorter mortgage form. Simple, not complicated. Informative, not confusing. Terms are clear. Fees are transparent. Americans making a down payment on their dreams shouldn’t be terrified by pages and pages of fine print – they should be confident they’re making the right decision for their future.

 

There’s more we’re announcing today. We’re working to turn more foreclosed homes into rental housing, because as a lot of families know, that empty house or for sale sign down the block can bring down prices for an entire neighborhood. We’re working to make sure people don’t lose their homes just because they lost their job. And these steps will make a difference.

 

But as I said earlier, no program or policy will solve all the problems in a multitrillion-dollar housing market. The heights the housing bubble reached before it burst were unsustainable. It will take time to fully recover. And it will require everyone to do their part.

 

See, as much as our economic challenges were born of eroding home values and portfolio values, they were also born of an erosion of some old-fashioned American values. An economy that’s built to last demands responsibility from everyone. Government must take responsibility for rules of the road that are fair and fairly enforced. Banks and lenders must be held accountable for ending the practices that helped cause this crisis in the first place. And all of us must take responsibility for our own actions – or lack of action. So I urge Congress to act. Pass this plan. Help more families keep their homes. Help more neighborhoods remain vibrant and whole. Help keep more dreams defended and alive. And I promise you that I will keep doing everything I can to make the future brighter for this community, this commonwealth, and this entire country.

 

Thank you, God bless you, and God bless America.

 

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4closureFraud.org

Comments
88 Responses to “President Obama Speech | We were hurt badly by the irresponsible actions of buyers who knew they couldn’t afford them”
  1. Ohio Lawyer says:

    Please don’t act as if irresponsible borrowing did not contribute to this mess. It did, and in a big way. But it was only one part of the problem. People wanted bigger, nicer houses. That’s natural. The financial industry, too, was a major (and I would agree, a larger) part of the problem. It wanted higher profits. That’s also natural. So, too, did the government interference in the market play a major role. Through Fannie and Freddie, and through federal programs designed to artificially increase home ownership, the federal government became the enabler. That is unnatural.

    What no one seems to concede is that all three of these actors were needed to create this “perfect storm.” You had to have a willing seller and a willing buyer for each mortgage loan made. But Big Brother was at the table, too, cheering on both.

    People on this site love to scream about Wall Street greed and the “banksters.” And I make my living fighting those banks and trying to help people stay in there homes. But you can’t convince me that only one party bears all of the blame. It might be cathartic to point the finger at the other guy, but it is intellectually dishonest to ignore the blame we ourselves bear.

    • lvent says:

      Ohio Lawyer: BOOO!! ONLY 20% OF THE FRAUDULENTLY INDUCED LOANS WERE LIARS LOANS! STOP LYING…LIAR! We are here because WALL STREET..THE GSES….AND THE BANKSTERS OVERSOLD INTEREST IN OUR NOTES BY $700 TRILLION DOLLARS….THEY ARE NOT ONLY INSOLVENT BECAUSE OF THAT FRAUD ON STEROIDS…THEY ARE BEING ALLOWED TO BANKRUPT THE PEOPLE AND STEAL AMERICA TO PAY FOR ALL OF THEIR INSOLVENT DEBT!!….THEIR DEBT CAN NEVER…EVER …BE REPAID….YOU, OHIO LAWYER ARE EITHER A DUMB ASS OR YOU ARE A TRAITOR…!

      • lvent says:

        BTW…OHIO LAWYER…I AM POINTING THE FINGER OF BLAME SQUARELY AT THE POLITICIANS! ..THE TRAITORS WHO ALLOWED THIS..! .NOT THE VICTIMS ON MAINSTREET..! EVERYONE BOUGHT A HOUSE THEY COULDNT AFFORD IF THESE CROOKS INTENTIONALLY DESTROYED THE ECONOMY…WHICH THEY DID!!!

      • lvent says:

        The politicians are traitors… ! They are the GREEDY BASTARDS who allowed this..and they suck.. Throw them in prison…!

      • lvent says:

        Eliot Spitzer for president.. 2012!

      • lvent says:

        Bernanke just said CONGRESS CREATED THE FED…IF THEY DONT LIKE OUR POLICIES THEY CAN DRAW UP A MANDATE TO ABOLISH THE FED!!!!!!!

      • lvent says:

        WOW…!!!!! BERNANKE JUST CALLED THE TRAITOR POLITICIANS OUT…AND PUNCHED THEM ALL RIGHT IN THE FACE!!!!

      • lvent says:

        PROOF…ITS THE POLITICIANS….THEY ARE THE TRAITORS WHO PUT US ALL HERE…THE POLITICIANS CREATED THE FED….CONGRESS NOW SAYING THE FED NOW OWNS A TRILLION DOLLARS IN INSOLVENT MORTGAGES!…..BERNANKE SAID…A BANK TAX COULD FIX THIS!!!!
        THATS RIGHT BERNANKE…..ALL OF YOU JUST EAT IT!! ABOLISH THE FED! THROW THE TRAITOR POLITICIANS IN PRISON! ISSUE OUR OWN U.S. BANK NOTES BACKED BY NATURAL RESOUCE REVENUES!!!!!!

      • lvent says:

        CALL CONGRESS..TELL THEM WE THE PEOPLE DEMAND THEY DRAW UP A MANDATE TO ABOLISH THE FED!!!!!!! WE THE PEOPLE DEMAND THE U.S. GOVERNMENT ISSUE ITS OWN CURRENCY AS THE U.S. CONSTITUTION REQUIRES…! DEMAND U.S. BANK NOTES BACKED BY NATURAL RESOURCE REVENUES!!!!

      • lvent says:

        Sen.Bacchus saying Obama wants U.S. TAXPAYERS to insure more risky loans….!

      • lvent says:

        The housing debt of WALL STREET..THE BANKS….THE GSES IS UNSUSTAINABLE! THERE IS NO MONETARY FIX FOR THEIR $700 TRILLION DOLLARS IN MORTGAGE FRAUD! …..

      • lvent says:

        The Bernanke hearing today was very revealing…BERNANKE spelled it out in no uncertain tterms. It is the POLITICIANS WHO CAUSED THIS…BERNANKE SAID CONGRESS CREATED THE FED..
        So in a nutshell…..CONGRESS DICTATES POLICY…THEY ARE DICTATING POLICY TO OBAMA AND THEY ARE THE REAL TRAITORS FROM WITHIN ! THROW THE TRAITORS OUT!

    • Jennifer Wang says:

      Wow, I wont hire you. If in fact you are a lawya’. Read Mr Black before commenting and sounding like an idiot.

    • Katheryn says:

      Hey Mr. Lawyer Guy

      Try out this rationale; the fine tuned plan of the fraudsters included falsifying property values and incomes on the applications where and when needed. The buying frenzy was created by the builders, bankers and real estate market. I was in the industry. They raised prices faster than then could print new price sheets. Bankers and investors were flipping properties and making millions in a matter of months. This was possible only because of “lenders”. You were considered a dope if you didn’t jump on the bandwagon and, in deed, many got very rich. People who were more cautious figured the worst that could happen is they would sell and make a few dollars. Why would they not when they saw the frenzy and so many people making money or having equity in their homes instantly. What the general population did not know was that this was orchestrated, planned, and it was really about getting signatures on a note which could then be securitized, insured for failure (a sure win), sell the same signatures over and over and over..should I go on? Even taking your analysis into consideration, and that “people” were to blame for wanting bigger houses; they couldn’t have gotten bigger houses without the fraudsters, who were already placing bets on those that would fail. My blood boils when I read your post. You can call me “intellectually dishonest” but I call you “intellectually challenged”. Sure glad I don’t need a lawyer in Ohio or are you just parroting Mr. Presidentes speach today? Sorry to jump on you this way, but really?????

    • Steve says:

      What happens is assumptions and statements like yours sheeples everyone together on the whole declining any individual rights to due process or investigations.

      • lvent says:

        Yeah right Steve…! You wish we never found out the truth!…That the politicians are all traitors and they are the very reason we were robbed!

      • lvent says:

        BTW….Steve…these are not assumptions…these are verifiable FACTS….! Where are your facts to support your assumptions….?

      • lvent says:

        Steve…..THE TRUTH IS…..the POLITICIANS have been and are invested in this massive fraud and have gotten richer than ever from our demise! CONGRESS IS ALLOWED TO INSIDER TRADE! COULD THESE POLITICIANS BE ANY FILTHIER?????? WHO REPEALED GLASS STEAGALL? CONGRESS DID! WHO HAD INSIDE KNOWLEDGE AND PLACED HEAVY PUT BETS AGAINST AMERICAN AIRLINES STOCK AT THE CME…ONE WEEK BEFORE 9/11 AND GOT RICH OFF OF THAT HORROR? WATCH THE YOU TUBE VIDEO ENTITLED 9/11 COINCIDENCES…EPISODE 17…..AND THEN COME BACK HERE AND GIVE ME YOUR ANSWER.

    • lvent says:

      There is NO WAY…the banks would ever had allowed too much risk unless they were getting rich off of it and committting massive fraud off of it…..! THE MONEYED ELITE KNEW….. THE BEST WAY TO ROB A COUNTRY AND ITS CITIZENS OF ALL OF THEIR WEALTH …..AND THEREFORE STEAL A COUNTRY….IS TO OWN THE FED AND THE BANKS…AND THEY KNEW THEY COULD BUY THE POLITICIANS BY MAKING THEM INVESTORS IN THE BIGGEST ROBBERY OF OUR WEALTH IN U.S. HISTORY!!! THROW THE TRAITORS OUT!

  2. lvent says:

    Its official….the CBO says the economy not only sucks its going to get worse! The home Refi plan is DOA..FOX NEWS calling for principle write downs….CONCLUSION…ITS NOT GOING TO HAPPEN…IF THE BANKSTERS GIVE PRINCIPLE WRITE DOWNS TO ONE INSOLVENT MORTGAGE…THEY HAVE TO GIVE IT TO ALL!!!! THE FRAUDCLOSURES WILL CONTINUE!! HEIL HITLER!!!!

  3. lvent says:

    FOX NEWS REPORTING ROMNEY SAYS …….HE DOES NOT CARE ABOUT THE POOR AND THAT IS THE MINDSET OF THESE POLITICIANS…ARROGANT!

  4. lvent says:

    WARNING SIGNALS: FOX Business reporting CBO ECONOMIC forecast BLEAK…OBAMAS REFI PLAN IS NOT GOING TO WORK!!!…THE CBO REPORTING UNEMPLOYMENT IS GOING TO RISE BY THE END OF THE YEAR…ECONOMIC GROWTH WILL SLOW….IN OTHER WORDS THE U.S. GOVERNMENT IS CALLING OUT OBAMA….AND SAYING OBAMAS LYING ABOUT THE ECONOMY IMPROVING….! IT IS ALL PROOF…THERE IS NO FIX THE MASSIVE FRAUD OF THE BANKS AND WALL STREET…! MAKE THE CRIMINALS PAY….CLEAR TITLE TO HOMEOWNERS….! RETURN THE STOLEN HOMES! STOP BANKRUPTING AND ROBBING THE AMERICAN PEOPLE FOR THE HUNDREDS OF TRILLIONS IN UNSUSTAINABLE DEBT OF WALL STREET!!! ABOLISH THE FED!! JAIL THE CROOKS! RESTORE THE U.S. CONSTITUTION! ISSUE U.S. BANK NOTES BACKED BY NATURAL RESOURCE REVENUE… THROW THE TRAITORS OUT OF AMERICA! ELIOT SPITZER 2012!

    FOX BUSINESS DOING A REPORT NEXT ON NATURÁL GAS HEATING COSTS TO PLUMMET…! NATURAL GAS AND ELECTRICITY ARE OWNED BY THE PEOPLE ….THE REVENUE FLOW FROM THOSE NATURAL RESOURCES COULD BACK OUR OWN CURRENCY AND MAKE THE ENTIRE COUNTRY PROSPER!!!

    • lvent says:

      Natural gas is cheap and plentiful…and so is electric!!!!!! And the people own it….!!! STUART VARNEY OF FOX SAID…..NEVER TRUST THE ELITE!!

      • lvent says:

        Fox news reporting….OBAMA SAYS OUR ELECTRIC BILLS MUST BE RAISED THROUGH THE ROOF..!!! STUART VARNEY OF FOX BUSINESS SAID ….NEVER TRUST THE ELITE!!!! I SAY THROW THE GREEDY BASTARD GLOBALISTS OUT OF AMERICA….!!!!.THEY STOLE EVERYTHING FROM US!!!!!! ABOLISH THE FED!!!!! FOX NEWS REPORTING…BERNANKE SET TO TESTIFY BEFORE THE HOUSE BUDGET COMMITTEE ABOUT WHETHER OR NOT HE WILL PRINT MORE MONEY AND CONTINUE THE ROBBERY AND BANKRUPTCY OF AMERICA!!!!

      • lvent says:

        FOX BUSINESS REPORTING FREDDIE MAC HOME INTEREST RATES AT AN ALL TIME LOW…..3%!!

  5. Igor says:

    PROSECUTE THE ATLANTA VETERANS ADMINISTRATION LOAN GUARANTEE OFFICER!
    http://movetoamend.org/prosecute-atlanta-veterans-administration-loan-guarantee-officer

  6. Zoe says:

    Only those not paying attention will miss the fact that the banks need new paperwork from those who are making payments. Many of those titles are messed up too. This just plays the same game again, a double whammy on the so-called responsible ones. A new round of creating financial air castles. Wake up, homeowners!

  7. Charles says:

    Get him out of our white house!

  8. Charles says:

    People voted for that pussihole because his lying scunt told them he is black. I feel betrayed and horrible.

    • lvent says:

      McCain may have been worse!..I would have never believed that McCain..who is a Vietnam vet…is a traitor too! He helped draft 2 of the most oppressive parts of the NDAA! $$$$=CORRUPTION….

  9. Beth A. says:

    THIS IS FROM THE 3RD WORST PRESIDENT IN U.S. HISTORY AND A PRESIDENT WHO HAS OVERSPENT HOW MANY TRILLIONS OF DOLLARS?

    KISS OFF OBAMA – YOU DON’T KNOW YOUR ASS FROM A HOLE IN THE GROUND. I CANNOT EVEN BEGIN TO TELL YOU HOW MUCH I CAN’T STAND YOU.

    Thanks. I feel better now.

  10. Javagold says:

    i would like to thank Obama…….for proving to me (and hopefully everyone else) that my gut feeling that there is no difference between D or R , was correct !!!

    • lizinsarasota says:

      My dear, that is totally not true. They are certainly indistinguishable in terms of being in the bankers’ pockets and on the take, but the crop of Republican looney tunes believe that a fetus is a person. That’s enough insanity to stop anyone in their tracks.

  11. kravitz says:

    Foreclosure Accord Deadline for States Postponed to Feb. 6
    http://www.businessweek.com/news/2012-02-01/foreclosure-accord-deadline-for-states-postponed-to-feb-6.html

    “The deadline for states to decide whether to join a proposed nationwide foreclosure settlement with banks was postponed to Feb. 6 from Feb. 3, according to the Iowa Attorney General’s Office.”

    Masto, anyone?

  12. kravitz says:

    Your transcript differs from the actual White House version somewhat…

    http://www.whitehouse.gov/the-press-office/2012/02/01/remarks-president-housing

    But that core paragraph is absolutely there…

    “I want to be clear:  This plan, like the other actions we’ve taken, will not help the neighbors down the street who bought a house they couldn’t afford, and then walked away and left a foreclosed home behind.  It’s not designed for those who’ve acted irresponsibly, but it can help those who’ve acted responsibly. ”

    Obama doesn’t address servicer-driven foreclosure, or thinks it doesn’t exist.

    I don’t matter to him. He has lost my vote for 2012 with those words. Don’t care if it means Mitt Romney.

  13. Charles says:

    That fucking guy is a fucking sell out. Thank God he will be a one term President. I cant wait. Retarded cunthole parading as an intellectual with his pretty speeches. Wall Street has his scunt in their pocket, thats why he muda cunt cant do one rass.

  14. Fury says:

    yeah, yeah, yeah. blame the victims of the fraud committed by the president’s best banking buds.

    how diabolical.

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