Obama’s Mortgage Plan for Fannie, Freddie May Face Legal Snag

[Joanne98]

Feb. 24 (Bloomberg) -- President Barack Obama’s plan to use mortgage-finance companies Fannie Mae and Freddie Mac to refinance as many as 5 million loans may face legal challenges over whether the administration is overstepping its authority.

The proposal may violate requirements that homeowners put up at least 20 percent of the appraised value of a home or carry mortgage insurance, said U.S. Representative Scott Garrett of New Jersey, the ranking Republican on a panel that oversees the companies.

“I don’t see how that stands in face of what the statute says,” Garrett said in an interview. “It certainly seems as though they need to seek a congressional change, a legislative statutory change.”

Fannie and Freddie’s chief regulator, James Lockhart, has said the changes are exempted from mortgage-insurance rules written into the companies’ charters and won’t require new appraisals. Lockhart said the strategy will make it easier to help struggling homeowners get affordable mortgages.

http://www.bloomberg.com/apps/news?pid=20601087&sid=alIg4Jsp56Vw&refer=home

This could be the beginning of a new Republican stategy. If you can't win in votes, go through the courts to block Obama.

[ixion]

1. going to the courts isn't really new... look at Bush or Coleman.

Blocking by obstruction is one of the things they seem to be very adept at.


That said, I find the charge of "over-stepping authority" laughable in this sense.

So, torture, illegal invasions, warrantless wiretapping, fraud, these things are apparently within the "authority" of the President, but helping home owners here in the US is out-of-bounds.

The mind boggles.