Obama housing plan needs more than okay from Republicans

In the first two years of his presidency, it appeared sometimes that Obama was the only one working.  Whenever there was something that needed to happen, everyone looked to him to step up to the podium and open his mouth.  I think that this is about to change because now it appears that those selected to help him is now stepping forward. 

In an article by Associated Press writer Alan Fram titled Key House Republican praises Obama housing plan, Treasurer Secretary Timothy Geithner is reported to have addressed Congress with a plan to begin reducing taxpayer’s risk in Fannie Mae and Freddie Mac.  It reported that “the Obama administration's plan to gradually dissolve ailing housing giants Fannie Mae and Freddie Mac and to shrink the government's role in the mortgage market.”   "Our hope is Congress will work with us to find a consensus for a long-term solution," Geithner told the lawmakers.  "You don't want to run a system where the taxpayer is on the hook when things go bad," Geithner said.  While this effort is applauded, it must also be said that the purpose for first establishing these entities should never be forgotten and given the current state of private lenders reluctance to lend to minority and low-income households, there is a fear of further disenfranchisement.

In order to make this plan workable to those who would be greater affected than others is to insure that the protection remain at the federal level and not be forfeited for the sake of state’s rights.  Minorities and low-income families need the federal government to safeguard them especially since it is quite difficult for citizens of many states to sue if states refuse to provide them the same security that we find in the Fannie Mae, Freddie Mac mortgages.  In the article they remind us that “the administration's report offered three options for overhauling Fannie and Freddie. One would limit the government to helping poor and middle-class borrowers through agencies like the FHA. The second would have the government back private mortgages, but mostly during times of economic crisis. The third would have the government "reinsure" some mortgage investments that are already guaranteed by private insurers and that Fannie and Freddie “buys mortgages from banks and other primary lenders package them together and sell them with a guarantee that investors would be repaid in case of default. That system helps keep interest rates lower and provides lenders with fresh cash to make additional loans.”

This is a sorely needed chance for those dreaming of becoming middle class to actually have a chance to obtain it and the last thing this nation needs is to go backwards instead of forward.