Today, more than 18 months since Treasury rolled out the program, HAMP is not living up to the administration’s promises. Even more troubling, it may be causing additional burdens for homeowners already facing default.

The evidence of failure is plain:

HAMP has failed to meet the administration’s own projections. According to government figures released on Monday, only 434,716 homeowners have received permanent mortgage modifications as of July. Meanwhile, the Treasury Department has cancelled the temporary modifications of 616,839 borrowers, with 96,025 modifications cancelled last month alone.

Neil Barofsky, the special inspector general overseeing the Troubled Asset Relief Program, released an audit of HAMP in March concluding that even if it processed millions of permanent mortgage modifications, “the program will not be a long-term success if large amounts of borrowers simply redefault and end up facing foreclosure anyway.” It appears that is what’s happening.

Leading industry observers at Fitch Ratings have predicted that as many as 75% of homeowners receiving permanent modifications under the government program will fail to make their reduced payments and redefault. Indeed, more than one-third of these homeowners had already fallen months behind on their modified mortgage payments by Memorial Day 2010.

It isn’t hard to understand why: The median debt-to-income ratio for HAMP borrowers in permanent modifications remains staggering at 63.5%. By comparison, the Federal Housing Administration (FHA) generally imposes a 41% cap on borrowers’ debt-to-income ratio. The FHA does allow for exemptions if there is evidence of substantial cash reserves or an acceptable credit history—neither of which is the case for distressed HAMP participants. Clearly, too many who get a HAMP mortgage modification are still over their heads.

Additionally, Treasury has repeatedly issued complex rules that make compliance difficult for mortgage servicers and homeowners alike. Last year the rules were changed eight times, and Treasury has changed the rules five more times thus far in 2010. More than a million homeowners have applied for mortgage modifications, but the program’s complex rules have made for a grindingly slow process—and kept many homeowners in limbo.

In a recent appearance before the House Oversight Committee, five of the nation’s largest mortgage servicers testified that of the three million mortgage modifications they reported, only 7% (205,800) received permanent HAMP modifications. The majority received long-term mortgage assistance through privately funded programs at no taxpayer cost. And yet, as Ed Pinto, the former chief credit officer of Fannie Mae, testified on June 24 before the House Oversight Committee, “HAMP reversed the upward trend in the numbers of [private sector] modifications and hopelessly tied the modification process up in knots.”

It is hard to conclude otherwise than that this program has wasted taxpayer money to accomplish in more time, with fewer results, what the private sector was already doing.

Unfortunately, too many people have struggled to stay in homes they cannot afford even with taxpayer-subsidized relief. They’ve thrown away resources on mortgage payments and fees that could have been applied toward other suitable housing within their means. Furthermore, their credit scores—which had already suffered serious hits—are now further threatened by redefaults and will take more time to recover.

The administration recently announced an additional $2 billion for Treasury’s TARP-funded Hardest Hit Fund, and a separate $1 billion for a similar program, administered by the Department of Housing and Urban Development, that offers nonrecourse loans of up to $50,000 to distressed homeowners in “targeted communities.” In light of HAMP’s track record, the great danger is that this will only throw good money after bad.

The administration’s efforts to help homeowners in trouble were well intended. But it is a costly failure and should be shut down.

http://www.gop.gov/wtas/10/08/25/wsj-cleaning-up-the-mortgage

Washington, DC – U.S. Congressman Mike Pence, Chairman of the House Republican Conference delivered the following remarks on the House floor today:

“In the worst economy in a quarter of a century, American families are hurting, businesses are struggling in the city and on the farm. And that’s obvious to almost everyone in this country except the Obama Administration.
 
“Remarkably, yesterday, the White House issued a report saying that the stimulus bill that passed a year and a half ago, had ‘saved or created 2.5 to 3.6 million jobs.’ As my three teenagers might say to me in like circumstances, ‘Really?’ Two point five to 3.6 million jobs? Unemployment was 7.5 percent when the stimulus was passed, it’s 9.5 percent today.
 
“It’s important the American people know that the report, issued by the administration yesterday, isn’t even based on actual numbers. It comes from what economists say is a highly-inflated projection of how much economic growth is created for every government dollar that’s spent. The facts come from the Bureau of Labor Statistics. They speak for themselves.
 
“Since the stimulus was enacted, more than 3 million jobs have been lost in this country. A net job loss of 2.4 million jobs. Enough with the talk. The stimulus bill has failed. It’s time for new ideas. Across the board tax relief and fiscal discipline now.”

http://www.gop.gov/press-release/10/07/15/pence-take-on-white-house

Check out James Catledge on LinkedIn! http://www.linkedin.com/in/JamesBCatledge

WILLIAMSVILLE– Congressman Chris Lee (NY-26) and local county and municipal elected officials were at the Amherst Municipal Building today to discuss their concerns over Washington and Albany’s failure to provide a fiscal blueprint on how to reduce runaway spending.

Leading House Democrats pushed a so-called “budget enforcement resolution” that is not a budget at all and does not disclose growing deficits, while state leaders are more than three months late in producing a fiscal roadmap. Compounding matters is the fact that counties throughout New York State are at the mercy of Federal and State government mandates that comprise significant shares of their budgets.

“Struggling Western New York families are making tough choices every day in order to live within a budget, and Washington and Albany need to do the same,” said Congressman Lee. “With a national debt of more than $13 trillion, Washington and Albany both need to stop kicking the can down the road and develop bipartisan fiscal blueprints to strengthen our economic future.”

“The budget uncertainty in the state and federal government creates great stress for our local governments and the economy,” said Erie County legislator Ray Walter. “The cost of mandated services that were already provided by the County have not been reimbursed creating cash flow problems that could result in delayed payments to service providers. This creates a ripple effect in our already shaky economy. The economy likes certainty and right now the State and Federal governments are failing to provide anything close to that.”

“If the United States doesn’t come to terms with its crushing debt, the interest payments alone will be unaffordable for the next generation,” said Amherst Supervisor Barry Weinstein. “I would hate to see the United States spend itself out of existence.”

According to the nonpartisan Congressional Research Service, the failure of the U.S. House of Representatives to pass a budget resolution would be unprecedented in the modern era. In 2006, House Majority Leader Whip Steny Hoyer (D-MD) – who was then the Democrat Whip – said enacting a budget was “the most basic responsibility of governing.” Rep. John Spratt (D-SC), the top Democrat on the House Budget Committee, put it more succinctly that year when he said, “if you can’t budget, you can’t govern. ”Douglas Holtz-Eakin, former Director of the Congressional Budget Office has said that “[B]udgets are the bricks and mortar foundation of a policy vision.The Democrats’ failure to produce a budget is a clear indictment of their lack of a vision to steer America to a stronger future.”

http://chrislee.house.gov/index.cfm?sectionid=76&itemid=1241

GEHA to Run High Risk Pools in 21 States: Concerned about the additional cost and potential litigation, 21 states decided to let the federal government run the high risk pool for their state.  The Government Employees Health Association (GEHA) will administer the plan in those 21 states.

Sick People Must Wait Until October?: Both The New York Times and USA Today reported that sick people in some states might have to wait until September or October before they can get coverage.  To date, President Obama’s administration has missed two high risk pool deadlines.

June 23, 2010, Deadline:  ObamaCare required high risk pools to be established no later than 90 days after enactment.  President Obama signed the bill on March 23, 2010.

June 30, 2010, Deadline:  On June 16, 2010, President Obama promised sick Americans, that they would have health insurance in 14 days.  He said, “In just two weeks, Americans denied coverage because of preexisting conditions will be able to enroll in a new national insurance pool.”

August 1 or beyond?:  The Department of Health & Humans Services (HHS) said sick people in some states will have to wait until August 1, 2010, or the fall to get coverage.

CBO Questions ObamaCare’s High Risk Pools: In a letter to Sen. Enzi (R-WY), the Congressional Budget Office (CBO) warned that ObamaCare’s $5 billion will not be enough to pay for all eligible individuals, and HHS will be forced to limit enrollees.   Previously, President Obama’s chief actuary reached a similar conclusion.

High Risk Pools in H.R. 4038, the Republican Alternative: H.R. 4038, the Republican alternative to ObamaCare, provides $25 billion for high risk pools.  CBO said H.R. 4038 is completely paid for by reforming medical malpractice junk lawsuits and without raising taxes or cutting Medicare.  In addition, H.R. 4038 relies on the successful current grant formula to distribute the money to existing high risk pools and provides an incentive for states to establish one.

http://www.gop.gov/policy-news/10/07/02/obamacares-temporary-high-risk-pools

 The housing and unemployment numbers out Thursday morning underscored a disturbing trend. With the expiration of the $8,000 homebuyer tax credit, national figures from May suggest the real estate market is not ready to stand up on its own. 

The National Association of Realtors released a report Thursday showing the number of buyers under contract plummeted 30 percent in May to the lowest level on record. That was after the Commerce Department reported last week that new home sales fell 33 percent last month, also to the lowest level on record. 

New jobless claims also rose for the second time in three weeks, ahead of the release of June’s unemployment number, which is expected to show only the slightest increase in private sector jobs. 

A Congressional Budget Office report out Wednesday underscored the implications for the country’s long-term health of a persistently weak economy. Fewer jobs means fewer taxpayers, which means less revenue for the government. If intensive federal spending is not yielding a return on investment, the government is that much deeper in the hole. 

CBO Director Douglas Elmendorf wrote on his blog that unless the government finds a way to bring in a lot more revenue and make major spending cuts, the persistently high deficits could “push debt to unsustainable levels.” Under one scenario, the CBO said debt would reach 109 percent of GDP by 2025 and 185 percent by 2035.

The trend lines are drawing renewed criticism of the Obama administration’s approach to the economy and may imperil his attempts to tackle multiple domestic challenges in the months ahead.

On Thursday, the president delivered a speech calling for congressional action on an immigration overhaul package. He recently used the BP oil spill to call for comprehensive energy legislation.That’s on top of a banking overhaul bill that passed the House but faces a tough slog through the Senate. 

Though Obama is under pressure to guide the oil spill cleanup and Gulf Coast recovery at all costs, his congressional critics say the administration needs to take a new and focused approach to the economy. 

“The president promised when he signed the (stimulus) bill that unemployment wouldn’t exceed 8 percent. But now it’s nearly 10 percent,” House Minority Leader John Boehner told Fox News. “It hasn’t created jobs.” 

Boehner’s office released a report on stimulus spending Wednesday accusing the administration of backing a misguided economic strategy and noted that there aren’t nearly enough job openings to make a dent in the unemployment problem. “With just 2.7 million job openings in March, there were 5.6 unemployed Americans seeking each available job,” the report said. 

White House economic advisers have described the economic recovery as one where job creation will eventually follow overall economic improvement. But even that has flagged. While the economy grew 5.6 percent in the last quarter of 2009, revised figures show it grew just 2.7 percent in the first quarter of this year – not the kind of economic surge needed after a period of sharp decline. 

The stock market also is struggling to approach pre-recession highs. After touching 11,000 in April, the Dow Jones Industrial Average closed the second quarter at the lowest level for the year, and down 10 percent from just three months ago, to below 10,000.

And manufacturing orders dropped to their lowest level since October. The index fell by the largest monthly decline since December 2008.

Obama is keeping a positive outlook, however, noting the gains that have been made under his watch. 

“When I was sworn in, we were losing 750,000 jobs a month. … The economy was shrinking at 6 percent,” he said at a town hall in Wisconsin Wednesday. “Today, it’s growing again.” 

Rep. Jan Schakowsky, D-Ill., said the economy is “heading in a better direction” and that the government is committed to building on those improvements. 

“It is about jobs, jobs, jobs,” she told Fox News.

House Speaker Nancy Pelosi told reporters Thursday that unemployment checks are the fastest way to spur job creation, since they give families money to spend. 

http://www.foxnews.com/politics/2010/07/01/economic-vital-signs-flashing-red-obama-shifts-political-course/

“I was home in Indiana yesterday and people are concerned about jobs, they are concerned about spending and they are deeply concerned about the crisis in the Gulf. The widening environmental crisis in the Gulf is a tragedy. British Petroleum must be held accountable for every dime of impact on our environment, on the families, and on the communities of the region. This administration must also be held accountable.

“What is clear across the political spectrum is that this administration was slow to respond to this widening environmental disaster and must be held to account. The American people expect the president to work the problem, not work the media. They expect the president to provide the kind of direct and energetic leadership that the laws adopted after the Exxon-Valdez tragedy contemplate.

“That is BP’s well and it is BP’s responsibility to cap it. It is BP’s financial responsibility for the cleanup and the consequences. But that is our coastline and the American people expect the President of the United States and this administration to energetically lead the effort and marshal all resources across the country and across the world to mitigate the impact on our environment and on the families and the communities in the region.

“Also, the American people expect that this administration will not use this opportunity to advance their liberal agenda. Our nation wants this president to work the problem not work his liberal agenda on energy. Rahm Emanuel said famously about a year ago that you ‘never want a serious crisis to go to waste.’

“And now we hear word that the president is preparing this evening, in the midst of this widening crisis, to use his address to the American people to advance his disastrous national energy tax known as the cap and trade. The American people don’t want this administration to exploit the crisis in the Gulf to advance their disastrous energy policies. We won’t cap that well with cap and trade. We won’t help the families in the region or across this country by raising the cost of energy on every American in the worst economy in 25 years.

“We need a new energy policy. House Republicans have offered the American Energy Act. It’s an all of the above approach that says yes to environmentally responsible domestic exploration for oil and natural gas. It says yes to alternative energy sources like wind and solar and nuclear. And says yes to conservation.

“But right now, the American people want this administration to focus on putting first things first. To make a priority of capping the well and restraining the flow of that oil to the coastline and leave debates over their liberal policy to the future.”

 http://www.gop.gov/press-release/10/06/15/pence-the-american-people

Legal scholars laugh out loud at Republican state Sen. Russell Pearce’s proposal and warn that it would be blatantly unconstitutional, since the 14th Amendment guarantees citizenship to anyone born in the U.S.

But Pearce brushes aside such concerns. And given the charged political atmosphere in Arizona, and public anger over what many regard as a failure by the federal government to secure the border, some politicians think the idea has a chance of passage.

“I think the time is right,” said state Rep. John Kavanagh, a Republican from suburban Phoenix who is chairman of the powerful House Appropriations Committee. “Federal inaction is unacceptable, so the states have to start the process.”

Earlier this year, the Legislature set off a storm of protests around the country when it passed a law that directs police to check the immigration status of anyone they suspect is in the country illegally. The law also makes it a state crime to be an illegal immigrant. The measure, which takes effect July 29 unless blocked in court, has inflamed the national debate over immigration and led to boycotts against the state.

An estimated 10.8 million illegal immigrants were living in the U.S. as of January 2009, according to the Homeland Security Department. The Pew Hispanic Center estimates that as of 2008, there were 3.8 million illegal immigrants in this country whose children are U.S. citizens.

Pearce, who has yet to draft the legislation, proposes that the state of Arizona no longer issue birth certificates unless at least one parent can prove legal status. He contends that the practice of granting citizenship to anyone born in the U.S. encourages illegal immigrants to come to this country to give birth and secure full rights for their children.

“We create the greatest inducement for breaking our laws,” he said.

The 14th Amendment, adopted in 1868 in the aftermath of the Civil War, reads: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the state wherein they reside.” But Pearce argues that the amendment was meant to protect black people.

“It’s been hijacked and abused,” he said. “There is no provision in the 14th Amendment for the declaration of citizenship to children born here to illegal aliens.”

John McGinnis, a conservative law professor at Northwestern University, said Pearce’s interpretation is “just completely wrong.” The “plain meaning” of the amendment is clear, he said.

Senate candidate Rand Paul, a Kentucky Republican and darling of the tea party movement, made headlines last month after he told a Russian TV station that he favors denying citizenship to the children of illegal immigrants.

A similar bill was introduced at the federal level in 2009 by former Rep. Nathan Deal, a Georgia Republican, but it has gone nowhere.

The Federation for American Immigration Reform, based in Washington, said Pearce’s idea would stop immigrants from traveling to the U.S. to give birth.

“Essentially we are talking about people who have absolutely no connection whatever with this country,” spokesman Ira Mehlman said. “The whole idea of citizenship means that you have some connection other than mere happenstance that you were born on U.S. soil.”

Citizenship as a birthright is rare elsewhere in the world. Many countries require at least one parent to be a citizen or legal resident.

Adopting such a practice in the U.S. would be not only unconstitutional but also impractical and expensive, said Michele Waslin, a policy analyst with the pro-immigrant Immigration Policy Center in Washington.

“Every single parent who has a child would have to go through this bureaucratic process of proving their own citizenship and therefore proving their child’s citizenship,” she said.

Araceli Viveros, 27, and her husband, Saul, 34, are illegal immigrants from the Mexican state of Guerrero. He has been in Phoenix for 20 years, she for 10, and their 2- and 9-year-old children are U.S. citizens.

“I am so proud my children were born here. They can learn English and keep studying,” Viveros said in Spanish.

She said her husband has been working hard in Phoenix as a landscaper, and their children deserve to be citizens. The lawmaker’s proposal “is very bad,” she said. “It’s changing the Constitution, and some children won’t have the same rights as other children.”

Associated Press writers Jacques Billeaud and Amanda Lee Myers contributed to this report.

http://www.google.com/hostednews/ap/article/ALeqM5iGTouFCrSI3pBK2paQbRlXenFuRQD9GBS2901

Also check out my personal blog!

http://www.JamesCatledge.com/

Don’t expect Congressional Democrats to tell the public about these details either.  The New York Times reports, ”Democrats Skip Town Halls to Avoid Voter Rage.”

Higher Health Insurance Prices

$2,100 more for families: The Congressional Budget Office (CBO) has predicted that early retirees, the self-employed, small business workers, and millions of others who buy family coverage in the individual market will pay $2,100 more for their health insurance under ObamaCare.

$107 Billion Pass-Through Taxes: President Obama’s chief actuary concludes that taxes on medical devices, pharmaceutical companies, and health insurance companies will be passed on to health insurance buyers in the form of higher premiums.

$569.2 Billion in Higher Taxes

Job Loss: Almost 90 percent of medical device manufacturers are preparing to cut jobs because of ObamaCare’s $20 billion tax on medical devices.

Medicine Cabinet Tax: ObamaCare increases taxes on aspirin, cough syrup, and other nonprescribed medical withdrawals from HSAs, FSAs, and HRAs and limits tax-free contributions to FSAs.

Loss of Health Insurance

No More Employer Provided Coverage: Several large employers are considering dropping health benefits because it is cheaper for them to pay the penalty than it is for them to provide health insurance.

nHealth Cancels Current Policies: All current customers of nHealth, an insurance company based in Richmond, Virginia, will lose their health insurance because the company can’t survive under ObamaCare.

More Health Care Spending

$115 billion more: Recently, the Congressional Budget Office (CBO) concluded that

ObamaCare will cost $115 billion more than it originally predicted.

21 percent of GDP: President Obama’s chief actuary says that health care will consume 21 percent of GDP under ObamaCare, which is an increase from 16 percent currently.

$575 Billion Cut From Seniors Health Care

Medicare Advantage Cuts: President Obama’s chief actuary believes 50 percent of seniors will lose their Medicare Advantage plans because of these cuts.  Seniors will lose benefits and services starting in 2011 as Medicare Advantage plans start to eliminate services because of ObamaCare.

Seniors’ Access to Doctors: In Texas, 300 doctors have stopped seeing seniors in the last two years.  President Obama’s chief actuary believes ObamaCare’s Medicare cuts will have the effect of “possibly jeopardizing access to care” and estimates that 15 percent of providers will not make a profit because ObamaCare reduces the reimbursement rate for providers.

http://www.gop.gov/policy-news/10/06/08/president-obama-to-skip-details

“In the three months since Joe Sestak first made his allegation the White House has denied, stonewalled and is now trying to downplay the claims with an unsubstantiated memo. This memo frankly raises more questions: What was Bill Clinton authorized to offer?  Did President Obama sign off on this conversation before it took place?  Now more than ever it is clear that this White House is not capable of policing itself and needs to open itself to an independent investigation.  But perhaps most disturbing is that this is an administration that claims to be the most transparent, accountable and ethical White House in history.  The only thing we know for certain now is that they have failed on all three counts.” – RNC Chairman Michael Steele
Read more: http://www.gop.com/index.php/news/read/statement_from_rnc_chairman_michael_steele_on_white_house_memo/#ixzz0pdYO459r

“Over the past year, the American people have been witness to President Obama’s massive expansion of the federal government into our daily lives. To assure the American people, President Obama’s Supreme Court nominee, Elena Kagan, will need to demonstrate that she is committed to upholding the vision of our Founding Fathers, who wrote a Constitution meant to limit the power of government, not expand it. The President has stated repeatedly that he wants a justice who will understand the effects of decisions on the lives of everyday Americans. But what Americans want is a justice who will stay true to the Constitution and defend the rights of all Americans, adhering to the rule of law instead of legislating from the bench. Given Kagan’s opposition to allowing military recruiters access to her law school’s campus, her endorsement of the liberal agenda and her support for statements suggesting that the Constitution “as originally drafted and conceived, was ‘defective,’” you can expect Senate Republicans to respectfully raise serious and tough questions to ensure the American people can thoroughly and thoughtfully examine Kagan’s qualifications and legal philosophy before she is confirmed to a lifetime appointment.”

http://www.gop.com/index.php/news/read/statement_from_rnc_chairman_michael_steele_on_president_obamas_supreme_cour/