Our tax dollars at work

A friend of mine at a PR firm sent me the memo below. This is from the White House Communications Office and it’s an interesting read.

I’m of two minds on this. On the one hand, I understand that the government needs to get the word out about what it’s doing on important issues. On the other hand, this feels like taxpayer-funded propaganda a la “1984”.

 

Putting aside for a moment the actual policy issues (about which I predictably have strong opinions), what do you think about the White House putting out memos like this?

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From: White House Communications [mailto:WhiteHouseCommunications@whitehouse.gov]

Sent: Thursday, January 24, 2008 12:19 PM

To: XXXX

Subject: IN CASE YOU MISSED IT: The Administration Is Helping Struggling Homeowners

 

In Case You Missed It:

The Administration Is Helping Struggling Homeowners

 

Administration Continues To Move Forward To Help Thousands Of Homeowners With Measures Announced By President Bush In August

 

 

 

"President Bush has been calling on Congress since August to join him in taking the steps necessary to help struggling American homeowners.  We have moved forward administratively to launch a new initiative expected to help more than 300,000 families by the end of this year, and the private-sector HOPE NOW alliance facilitated by Secretaries Paulson and Jackson is reaching thousands of additional borrowers to help as many Americans as possible avoid foreclosure.  However, some measures to help families stay in their homes must be enacted legislatively, and we continue to urge Congress to take these necessary steps, such as completing work on the President's FHA modernization bill, which President Bush has requested for more than a year."

 

─ White House Press Secretary Dana Perino, 1/24/08

Since The President's August Announcement Of New Steps To Help Homeowners, The Administration Has Made Significant Progress To Help American Families Stay In Their Homes

In September, the President and his Administration launched a new initiative at the Federal Housing Administration (FHA) called FHASecure.  FHASecure expands the FHA's ability to offer refinancing by giving it the flexibility to work with homeowners who have good credit histories but cannot afford their current payments.  By the end of 2008, the FHA expects this program to help more than 300,000 families refinance their homes.

Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson have facilitated the private-sector HOPE NOW alliance.  HOPE NOW has developed a plan under which up to 1.2 million homeowners could be eligible for assistance.  Among other objectives, this plan will help subprime borrowers who can afford the current starter rate on a subprime loan but would not be able to make the higher payments once the interest rate goes up.

President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007, which will help Americans avoid foreclosure by protecting families from higher taxes when they refinance their home mortgages.  This Act created a three-year window for homeowners to refinance their mortgage and pay no Federal taxes on any debt forgiveness they receive. 

President Bush Continues To Call On Congress To Complete Measures To Help Additional Families

The President has called on Congress since August to complete work on responsible legislation modernizing the Federal Housing Administration (FHA).  The President first sent his FHA modernization bill to the Hill in April 2006, and he is once again asking Congress to send him a bill as soon as possible so he can sign it into law.  This legislation will give FHA the necessary flexibility to help hundreds of thousands of additional families qualify for prime-rate financing.

Congress needs to pass legislation permitting State and local governments to help troubled borrowers by issuing tax-exempt bonds for refinancing existing home loans.  Under current law, cities and States can issue tax-exempt bonds to finance new mortgages for first-time homebuyers, but States are unable to do the same for homeowners seeking to refinance.

Congress needs to pass legislation to reform Government Sponsored Enterprises (GSEs) like Freddie Mac and Fannie Mae.  GSEs provide liquidity to the mortgage market that benefits millions of homeowners, and it is vital that they operate safely and soundly. The President has called on Congress to pass legislation that strengthens independent regulation of the GSEs and ensures they focus on their important housing mission. 

The President strongly believes that government assistance must be responsible – the wrong answer, such as a bailout, could actually prolong the problem or make it worse.