Bush's Veto Threat Of Housing Bill Is Another Example Of Poor Leadership

On Thursday May 8, 2008, the United States House of Representatives passed a Housing Aid Bill that would allow struggling homeowners to refinance their subprime mortgage loans through the Federal Housing Administration and provide funding to states to buy and fix up foreclosed homes. Bush has threatened a veto claiming that the bill would penalize prudent homebuyers and reward those that "gambled" that home values would rise. As to the funding provision to the states, Bush claims that it rewards the lenders who helped cause the problem. Total projected cost of the bill is estimated to be $17.7 billion over five years.

First, let's put this is perspective. According to some accounts, we are spending around $1 billion per month in Iraq, an amount that Congress doesn't  seem to have any trouble funding. So, any claim that we cannot afford the cost of the Housing Bill is just disingenuous. In addition, the bill provides that homeowners would be required to share any profits from selling or refinancing with FHA.

Second, the contention that the bill would penalize prudent homeowners is shortsighted Bushspeak. I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County in Southeast Michigan. Currently, one of every two homes sold here is bank owned foreclosed. This influx of housing inventory has caused all homes in the area to decline in value by as much as thirty to forty percent over the last few years. By reducing the number of foreclosed homes on the market, "prudent" homeowners will see their home values stabilize and, eventually, climb. To say they would be penalized is absurd.

Third, to contend that subprime borrowers "gambled" shows how disconnected this President is from reality. Subprime mortgage borrowers typically had very little choice when it came to financing available to them to buy a home. For the most part, the choice was to buy a home under those terms or not. What the subprime borrowers did not expect was that they would be laid off or outsourced during a recession that no one wants to admit has happened.

George W. Bush's approval ratings are amongst the lowest of any President in our nation's history. His, or his conrollers', veto threats of the current Housing Bills and the reasons for them, are more examples of why he is so unpopular.