The Center For Responsible Lending Must Pay (Pt. 3)

Read my lips…

Time to lead into absurdity… but only if you’ve read parts ONE and TWO first…

An essential part of the plan permits distressed homeowners to seek loan modifications in bankruptcy court, an option now permitted on other types of loans that are far less important to families and the economy. This provision will provide a new avenue for reducing hundreds of thousands of foreclosures without requiring any tax dollars.

How will it not require any tax dollars? I hear too many promises from politicians and those who wish to appease the public without saying anything at all. New programs require money. Taxation is the key way to generate this money. However, what shall we tax? The average person is breaking under the weight of their financial obligations. It’s no wonder people resort to quick loans on occasion.

One thing I think would be great to institute would be a lobbying tax. Lobbying is right and should be allowed on a level playing field. One of the ways to achieve that is through a luxury tax-style lobbying tax, I think. I’m sure it’s not an original idea. Since the Center For Responsible Lending (Eakes’ organization) is documented as having spent more than $1.7 million lobbying for bankruptcy and finance laws between 2004 and 2007, AND even more than that in 2008 alone ($280,000 in Q3 2008, per the Associated Press), they’d be paying some of that luxury tax to fund these programs!

Huh?

What’s happening here?

Equally important, it will provide stronger incentives for loan servicers to offer effective loan modifications outside of court. Allowing homeowners access to the courts means that voluntary private efforts to prevent foreclosures will work better — and, in doing so, will benefit the entire economy. And paired with the comprehensive and well-thought-out modification plan, many fewer families will need to take this course. ... click here to read the rest of the article titled "The Center For Responsible Lending Must Pay (Pt. 3)"