HOPENOW offers..hope

The HOPENOW Alliance sponsored a conference call discussing the ways they have helped “distressed homeowners” keep their houses and start to bring about the end of the foreclosure crisis.

The call described the new agreement HOPENOW has implemented to help distressed families. This agreement will hopefully “streamline help”- making monetary assistance come faster to families in need. The new agreement will also hopefully alert more at risk homeowners before they find themselves in financial trouble.

Leaders of the Alliance emphasized the progress their program has had, and the steps they are making to improve their efforts. They said they are still trying to make borrowers more open to discussing financing options with the people loaning them money.

Conference Call Dissects McCain’s Substance Free Housing Speech

The Center for American Progress Action Fund hosted a conference call examining Presidential hopeful John McCain’s Substance Free Housing speech.

Call moderators described the speech as having “all sizzle, no steak” and argued that it was “a day late and a buck short.” James Kvaal, Domestic Policy Advisor at the Center, wondered if Washington’s future, if under McCain, would include helping desparate homeowners, instead of simply “wall street” businessmen. Kvaal added that McCain’s stimulus package proposal was flawed, and did not do enough to help working class families.

Kvaal’s criticism also included a sentiment that McCain needs to start subscribing to new ideas, and that his recent call for lenders to come together to solve housing problems, was outdated and unsuccessful.

Full Senate Banking, Housing, and Urban Affairs Committee Hearing on Weak Housing Market and Related Credit Crunch Creating Stress in Banking Community

Today the committee hearing focused on the problems currently facing the banking industry, and how those problems are largely caused by the weakening housing market and credit predicament in the nation. Present at the hearing were Chairman of the Federal Deposit Insurance Corporation Sheila C. Bair, Comptroller of the Currency of the US Treasury John C. Dugan, Director of the Office of Thrift Supervision John M. Reich, Chairman of the National Credit Union Administration JoAnn Johnson, Vice Chairman of the Board of Governors of the Federal Reserve Donald L. Kohn, and Iowa Superintendent of Banking Thomas Gronstal.

One colorful individual at the hearing was a member of Code Pink, of the women-initiated peace movement, who walked up to Senator Dole and asked her what she was doing to ensure that US troops were coming home. Wearing a t-shirt with the slogan "Don't Fund War," and a hat of pink flowers and pink ribbons with "Make out, not war" scrawled across the top, the woman was escorted out of the room by a police officer. On her way out she cried, "How about housing for Americans rather than more housing for the military."

The hearing then progressed onto the issue that the weakening housing market was due to credit problems, and that the credit problems, in turn, are due to problems in the subprime market. Chairman Dodd voiced the general sentiment of the hearing, stating, "Where were the regulators? Why didn't they do more? A loan should be given on the loaner's ability to pay."

The panel of witnesses began with Ms. Bair, who called for a return to traditional lending practices. According to Ms. Bair, capital needs to flow to banks in order to provide security following the implementation of Basel II. The value of Basel seemed to be of great concern in the hearing. Senator Dodd questioned Ms. Bair on the impact Basel would have on the situation, to which she answered that because Basel runs on model system, it is only as good as the data they put in them. Therefore, they can only anticipate problems to a certain degree. Mr. Kohn echoed Ms. Bair, stating that as Basel II is implemented, banks must have capital to back it up and safeguard its solvency and overall economic stability. More capital essentially means banks, "being more active lenders who are actively engaged," and whose "viability not threatened."