Environmental Disaster – Gulf Coast Oil Spill

June 7, 2010

By Padmini Arhant

Ever since the explosion at the oil rig in the Gulf of Mexico that initially claimed 11 lives, the avalanche of unmitigated losses has become the reality.

It is evident in the oil dripping Pelicans, dolphins and lifeless birds alongside the economically devastated fishermen, tourist industry and restaurateurs.

Approximately 1.6 million gallons of oil reportedly gushed from the spill that is yet to be completely contained.

Meanwhile, it has evolved into the economic and environmental disaster for the entire Gulf Coast threatening the inhabitants in the adjacent regions with oil plumes traced as farther in Florida.

Further, the BP oil company liable for the calamity has maintained that it could take until August 2010 to stop the leak in the face of extensive damages to the states near the Gulf Coast.

During the congressional hearing on the major environmental catastrophe, it was clear the BP executives including the federal regulators responsible for monitoring the risks failed in their assessment of the pervasive repercussions from the oceanic accident prior to issuing permits.

Like any other hearing, the company CEOs’ concern for the shareholders interest superseded national interest when they evaded the obvious questions leading to the cause and aftermath of the accident.

The disappointments following the oil spill is the BP’s unsuccessful action to block the leak and more disturbing is the legislators, especially Alaska’s Republican Senator Lisa Murkowski and others rejecting the Democrat Senator Bill Nelson’s bill to increase the cap for oil spill damages to $10 billion from $75 million,

Thereby, eliminating the possibility to hold BP accountable in the greatest man-made environmental destruction.

As it turns out, according to the NYT June 5, 2010 report – titled ‘Gulf Oil Spill’:

“The letter co-signed by Janet Napolitano, the director homeland security, said that federal agencies had already spent $93 million on the spill response, which BP is yet to reimburse.”

When the industry representatives in Congress are in the forefront protecting them from financial liabilities and diligently transferring the burden on the taxpayers,

Besides allowing the federal agency to issue more permits for offshore drilling continuation,

The combined power in Washington and Wall Street determination to ruin the habitat with unsustainable policies is conspicuous.

Not to mention their decisions adding insult to injury endured by ordinary citizens across the coastal region having a ripple effect overall.

The reason to proceed with shallow water or deep water offshore drilling is provided as the necessity to meet the enormous energy requirement in the United States.

With energy and environment directly linked to consumption and conservation, the pursuit of clean energy from natural sources – solar, wind, hydropower and bio-fuel comprise the absolute safe energy solution against the increasingly risky and hazardous resources viz. coal, oil and nuclear energy.

Now the argument is immediate availability of the latter and the projected longer duration to harness the former.

Even though the solar, wind, hydrothermal as well as bio-fuel technology is currently in use, the U.S. investment in these abundant sources is replaced by the energy industry preferred limited resources i.e. oil, coal and nuclear power.

The simple explanation for the less importance to plentiful alternatives over scarce energy resources – which has led to perpetual wars, nuclear proliferation and consequently standoff is profit driven strategy set by the OPEC, ONGC, Coal and Nuclear industry.

Anything that is freely accessible to a large extent with a higher possibility to trade within national and international territories i.e. solar, wind and hydrothermal projects are secondary choices due to the broadening energy supply capabilities inducing competition to the energy monopolies in the industry.

The recent mining accident in Virginia, oil spill in the Gulf Coast, civilian nuclear program used as a pretext for nuclear weapons –

The latest being Myanmar, the military junta is apparently involved in uranium enrichment for a nuclear warhead,

All of it underscore the urgency to adopt energy programs that are environmentally conducive.

In terms of curbing the extraordinary energy demand, the society consuming less and leaning towards environmentally healthy lifestyle is the viable remedy to the burgeoning energy shortage.

For example, California’s recent announcement to ban plastic bags throughout the state and,

Previously guiding the nation on stringent carbon emission standards through EPA regulation to avoid legislative rigmarole are the positive steps to energy saving and life enhancement on earth.

Concentrating on the green technology development to boost green jobs is a favorable short and long term economic and environment goals.

Again, divestment from the conventional minerals to natural elements is the ideal alternative to energy independence.

Unless vigorous investments are made in the solar, wind, hydrothermal, biodiesel etc.,

The world will never be ready to migrate from the life endangering fossil fuel and nuclear energy to the truly green energy production.

Planet sustenance is dependent upon the ecosystem optimized preservation that is violated through prevalent drilling and mining for oil, coal and uranium.

The limitless human wants and desires have contributed to the status quo –

A dire economy, prolonged wars, cataclysmic changes to the environment in the form of extreme drought, flood, tornadoes, hurricane and tsunamis…beyond human control.

It is made worse by the lack of recognition to rein in on the profit oriented energy opportunities depleting the earth’s resources with no regard for the present or the future.

If the energy industry giants conscientiously engage in the energy derivation from sun, wind, water and bio-fuel the demand and the affordability factor can be effectively addressed, particularly with the hydrosphere phenomena –

Oceans covering the two-thirds of the earth’s surface supplemented by sunshine and windy conditions in the equatorial zones.

Instead, polluting and contaminating the natural habitat through risky mechanisms is opted regardless of the carnage from it.

Notwithstanding, the democratic powers political appeasement of the “Petro-dictatorial” regimes merely to replenish the ever growing contemporaneous energy needs.

There are several ways to relieve the society from the energy deficiency.

Reducing the usage and maximizing the above outlined potentials is the origin to end the energy and environment crisis.

Manufacturing and distribution of eco-friendly products and services is an emerging trend but not popularized in practice.

The existing problems related to the economy, energy, environment and political issues are attributed to excess greed, self-interest and dominance ultimately affecting all.

Unfortunately, the political and economic powers resist the environmental dangers in the Gulf coast oil spill and a range of energy industry mishaps for they refuse to steer away from the traditional means irrespective of the tragic outcome.

Expecting different results from the same methods fits the fantasy than the fact.

The position on the ‘presumed’ job losses from these sectors as the justification to resume offshore drilling in spite of massive environmental harm does not bode well for it ignores the similar, if not severe economic experience by the local industries and residents affected in the oil soaked areas.

Moreover, the energy industry is being requested to retain the workforce and not abandon them by diverting to solar, wind, hydrothermal and bio-fuel sources that aptly qualify as –

“Clean energy substitutes.”

Collective reaction rather than actions is witnessed in the Gulf oil spill with BP not demonstrating the ability to terminate the leak altogether into the seventh week of the horrific incident, rendering the numerous livelihood and lives dispensable.

Monetary compensation to the victims and the states impacted by BP’s negligence is the least the oil company could offer in this instance.

Marine life has been significantly impaired creating an ecological imbalance reflective in the deteriorating food pyramid.

Offshore drilling moratorium is negated by simultaneous shallow water drilling permits despite no guarantee in the so-called ‘risk free’ process.

Conflicting preparations are detrimental to the planet, the natural habitat for all species.

Energy challenges in the modern era are best dealt with natural and holistic approach.

Gulf Coast oil spill is just the tip of the iceberg in the energy exploration.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Energy, Environment, Featured | Leave a Comment 

Tragic Events

May 22, 2010

By Padmini Arhant

Heartfelt condolences to the victims’ families of the following events:

India – Air India plane crash in Mangalore, India on May 21, 2010 with more than 160 lives reported to have been lost and the few survivors seriously injured.

Afghanistan – Plane wreckage north of Kabul, from an Afghan commercial airliner with 44 people claimed to have succumbed to the fatal crash.

Insurgents attacks against NATO base in Afghanistan reportedly wounding coalition troops and civilian staff in the repeat assault on a major military installation.

Iraq – A Car bomb had killed 23 shoppers and wounded 50 in a crowded market in a Shiite town near Baghdad.

The loss of life from plane crash and the violent attacks in Afghanistan and Iraq are deeply regrettable.
Time is the best healer in overcoming grief and the victims memories remain as their legacy.

We pray for the departed souls to rest in peace and the injured for speedy recovery.

Written by Padmini Arhant · Filed Under Featured | Leave a Comment 

Happy Mother’s Day!

May 10, 2010

By Padmini Arhant

An opportunity to display gratitude to a mother for her various contributions beginning with the gift of life, endless love, family values and always being there to provide necessary support.

Although, it may not apply to all, a mother’s arduous and joyous experience in giving birth to life in itself deserves respect and appreciation.

A mother nurtures life from conception to adulthood teaching valuable lessons to her offspring.

Mother’s natural instinct to protect her child from harm is seen commonly in life species.

For some, the special relationship may not be shared with a biological parent.

Wherever there is genuine affection, care and companionship, that situation assumes motherhood, fatherhood or both.

Children benefit enormously by growing up in a loving and caring environment. It’s pervasive and has positive effects in life.

Society is represented by citizens and the individual productivity or the lack thereof often reflects the personal satisfaction in life.

Productivity not in monetary terms but the selfless service for greater good is the real achievement that guarantees inner peace and happiness.

A mother plays an important role in early childhood and cultivating those aspirations through simple actions enrich the human character.

It’s similar to sowing the seeds and nurturing all the way for full bloom with widespread fragrance.

On mother’s day, it would be symbolic to honor ‘Mother Earth/Nature,’ for the life sustenance elements and the incredible beauty that brings pleasure to the beholder.

Emulating Mother Nature’s abundant attributes could lead to ‘Nirvana,’ the enlightened soul attaining the universal knowledge.

Mother or Father’s day is everyday for they strive hard to be the family caregivers.

The caregivers are truly acknowledged when the beneficiaries return obligations by attending to the parents or the surrogates’ needs during any crisis particularly in the old age.

Happy Mother’s Day!

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured | Leave a Comment 

For the Record

April 6, 2010

By Padmini Arhant

I have never been on the White House payroll or received any payments in cash or kind from the authorities and any political parties, or anyone remotely associated or affiliated to the political, corporate and any form of organizations in the United States or anywhere in the world.

Furthermore, the humanitarian work has been entirely a free service, on a “volunteer” basis from the beginning and up until now.

Any communication received from or sent to the White House and the political party has been published for the worldview throughout my involvement in politics.

The painting that was mailed by the Chairman of the Democratic National Party, Gov. Tim Kaine with a request to contribute to electing the Democratic Party members was published on the website prior to the final health care vote that I did not endorse.

Unlike the public network pledging to be the ‘voice for democracy,’ who attacked me for not doing so, yet applying my current donation for the negative attributes towards whistle blowers is the irony in public affairs.

Is mudslinging a sign of insecurity or a “Free Speech” misnomer?

I have never met the then candidate and now the President Barack Obama in person nor had verbal conversations during the campaign and until now.

All communications have taken place via email and conventional mail up until last year.

Subsequently, the communication has been through regular mail only.

The materials were all published on the website and available for public review.

Therefore, for journalism to thrive in honor of democracy, I request certain members unnecessarily engaged in unsubstantiated allegations to refrain from defamation of persons dedicated to humanitarian service.

Instead, invest their time and my donations for a productive cause.

Solidarity in promoting truth and justice is required from the media and the press corps, the only hope for democracy to succeed.

Human values are determined by their actions and the noble virtues reflected through their courage to face those challenging the ideals.

I remain steadfast in lending the voice to the voiceless and will continue to strive for peace on earth.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Ethics, Featured | Leave a Comment 

Happy Easter

April 4, 2010

By Padmini Arhant

Easter Sunday is a moment to rejoice Lord Jesus Christ’s resurrection to life.

It’s a joyous occasion to realize the power of love and truth revealed by the son of God, Lord Jesus.

Lord Jesus Christ touched upon many hearts and the lord continues to be the radiant light for all those who seek the lord’s grace in life.

Happy Easter!

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured, Spiritualism | Leave a Comment 

Pesach or Passover Seder

April 3, 2010

By Padmini Arhant

The important Jewish festival that commenced on March 29 and observed until April 6, 2010 is symbolic to freedom.

A family celebration that involves a traditional meal set in a neat order known as ‘Seder.’

Passover is mainly focused on the suffering endured by the Jewish people in the biblical and modern times with a commitment to revive hope, redemption and faith.

It’s particularly related to “God freeing the Jewish people from slavery in Egypt, led by the prophet Moses,” and,

The twentieth century holocaust – a horrific crime against humanity that should never happen again to any human being anywhere in the world.

Religious occasion is a moment to rejoice and reflect on the meaning of life.

Human beings have tremendous ability to transcend negativities and prevail in promoting freedom, equality and peace.

Renouncing violence is the beginning of the end of human tribulation.

Universal love and peace is the core message to the world in conflict with one another.

“Chag Pesach Sameach” / “Happy Passover” to the Jewish families in the United States and across the globe.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured, Spiritualism | Leave a Comment 

Holy Week – Good Friday

April 3, 2010

By Padmini Arhant

Today marks an important day for those who pray to Lord Jesus Christ, the son of God and the savior of humanity.

Lord Jesus selflessly offered his soul to absolve many of their sins.

The caring and compassionate lord taught human beings the virtues that lead to salvation.

Lord Jesus Christ had to bear the cross on this holy Friday and the lord’s sacrifice exemplified his love for all human beings.

Lord Jesus teachings disillusioned many on the facts of life.

Through positive thoughts, words and deeds, it’s possible for the suffering soul to attain eternal bliss, i.e.
Strive to be worthy of Lord Jesus Christ’s grace, mercy and blessings.

Holy Good Friday to all who believe.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured, Spiritualism | Leave a Comment 

Afghan War after Troops Increase

April 1, 2010

By Padmini Arhant

The latest on Afghan war after adding more troops to the nine-year-old battle, a contentious debate that was dominant last year.

Associated Press – Sunday, March 28, 2010.

By Sebastian Abbot – Thank you.

“Troop deaths rise in Afghanistan – Numbers soaring as U.S. adds soldiers

Kabul – The number of U.S. troops killed in Afghanistan has roughly doubled in the first three months of 2010 compared to the same period last year as Washington has added tens of thousands of additional soldiers to reverse the Taliban’s momentum.

Those deaths have been accompanied by a dramatic spike in the number of wounded, with injuries more than tripling in the first two months of the year and trending in the same direction based on the latest available data for March.

U.S. officials have warned that casualties are likely to rise further as the Pentagon completes its deployment of 30,000 additional troops to Afghanistan and sets its sight on the Taliban’s home base of Kandahar province, where a major operation is expected in the coming months.

“We must steel ourselves, no matter how successful we are on any given day, for harder days yet to come,” Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, said at a briefing last month.

In total, 57 U.S. soldiers were killed here during the first two months of 2010 compared with 28 in January and February of last year, an increase of more than 100 percent, according to Pentagon figures compiled by the Associated Press.

At least 20 American service members have been killed so far in March.

The steady rise in combat deaths has generated less public reaction in the United States than the spike in casualties in the summer and fall, which undermined public support in the United States for the mission here.

Fighting typically tapers off in Afghanistan during the winter but peaks in the summer.”

————————————————————————————————–

War Strategy Assessment – By Padmini Arhant

The troops increase to Afghanistan was a national debate last year with mixed reaction from all sources.

It’s important to emphasize that there wasn’t an overwhelming public support to the additional troops deployment in Afghanistan.

There were many reasons for the lack luster response.

Among them, the most relevant ones being:

The U.S. and allies’ nomination of President Hamid Karzai as the head of the government for second term defied the Afghan people’s will.

Notwithstanding, the international outrage on the fraudulent general election that led to the opponent, DR. Abdullah Abdullah’s withdrawal from the election.

Another factor is the U.S. occupancy in Afghanistan approaching a decade and the constantly changing ‘purpose’ behind the mission remains intriguing until now.

After much deliberation, President Barack Obama decided to approve the request from the defense high command and argued, “It’s not an easy decision to do so.”

Indeed, pledging the troops’ lives to succeed in the targeted goals is never a simple action.

However, a prolonged war provides enough evidence to consider winding up the operation or at least minimize the troop level by supplementing with diplomacy and peaceful negotiations.

Peace and diplomacy could have prevailed with a democratically elected government. It was thwarted by the U.S. endorsement of an unpopular candidate.

Further, the explanation for more troops involved the U.S and NATO efforts to restore political stability in Afghanistan and terminate the Taliban/Al-Qaida activities.

The irony is, the Afghanistan political situation under the U.S. backed Karzai government shows no improvement in governance, despite the incumbent Afghan President being the U.S. foreign policy designates’ choice.

Similarly, the shift in the U.S. and Afghan government’s strategy towards Taliban insurgents appears to be a new approach to win the militants on their side with cash payments and abandoning the poppy fields eradication – the main source of income for the Taliban forces.

An action that is widely criticized by the human rights groups against narcotics in Afghanistan.

As predicted, the tension between the Karzai government and the U.S. administration has surfaced confirming the mistrust in the relationship.

While the political stalemate between the authorities in Kabul and Washington persists, the mounting U.S. casualties in the Afghan war cannot be ignored.

Troop withdrawal from Afghanistan and Iraq is no longer a choice but an immediate requirement to end the procrastinated occupation in foreign lands.

Divestment from wars to social and economic development in these regions must begin to reflect the sincere commitment to bring hope and opportunity in a society deprived of normal existence for decades.

Substituting the combat troops with Peace Corps eliminates the tragic loss of lives on all sides.

In addition, the peaceful atmosphere would deter terror recruitment and foster an environment for the youth as well as others to build their nations towards a positive direction.

Now is the time for the U.S. authorities in the White House, Pentagon and the State department to relinquish failed policies that is proved a liability claiming precious lives and contributing to the rising deficit.

War leads to grief, revenge and destruction.

Whereas, peace is an eternal bliss.

I convey my condolences to the families of the fallen heroes and pray for the early recovery of the wounded brave hearts.

Your sacrifice makes freedom possible for all.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Featured, National and Global Security | Leave a Comment 

Federal Program Evaluation on Mortgage Refinance and Foreclosures

April 1, 2010

By Padmini Arhant

Please refer to the details laid out in the preceding articles from other news organizations published on this website under the title ‘Mortgage Refinance and Foreclosures.’

Information is also available in the article, @www.mercurynews.com

“By Sue McAllister – San Jose Mercury News, Saturday, March 27, 2010 – Thank you.

“Titled – Debt Relief – Mortgage program: Who will benefit?

Answers to how the federal plan will work and whom it will help”
———————————————————————————–

Program Evaluation – By Padmini Arhant

Making Home Affordable program targets the vulnerable homeowners on the verge of losing their homes.

Mortgagees who are unemployed, underwater and delinquent in their payments could seek assistance upon they meet the criteria.

Aligning mortgage debt with the asset value in order to help people retain ownership is a prudent measure to stabilize the struggling housing market.

It’s evident from these news reports that the program is well intended but the burden rests on the taxpayers through,

Federal Housing Administration insured loans absorbing the entire risk on potential loan default,

And,

Incentives to lenders to reduce principal value for the underwater and unemployed customers provided from the TARP funds…

The finance sector responsible for the subprime mortgage crisis is exempt from any liability.

On the contrary, they are being coerced with the federal funding that appears to be inadequate to rescue the vast majority from foreclosures and loan qualifications.

Federal programs or reform requires oversight to ensure the rules adherence by the industry.

Again, an independent / non-profit consumer rights agency is appropriate to avoid the conflict of interest.

As stated by the consumer advocates, the bankruptcy procedure for loan modifications is more reliable than the service offered by the federal partnership with lenders.

When a particular method is not yielding the desirable results, it is best to choose the option with a positive outcome.

Since the rules are ignored by the industry, setting consequences for non-compliance is an effective approach to limit the program failure.

If the borrowers are subject to terms and conditions then it should be applicable to the lenders as well.

Finally, the program would be beneficial with the banks accepting a fair share of monetary obligations in the principal reduction and the refinancing structure, having been the beneficiary of taxpayer bailout.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

Mortgage Refinance and Foreclosures

March 31, 2010

By Padmini Arhant

In the current economy, two major issues deserve urgent attention.

They are – unemployment and home ownership.

This topic will focus on the homeowners and the federal program under consideration to address the foreclosures arising from high mortgages.

Meanwhile, the following news report and editorial from other news organizations are presented for reference.

According to the –

1. New York Times report By David Streitfeld – Friday, March 26, 2010 – Thank you.

New help for homeowners – Revising Loan Modification

The Obama administration will announce today a broad new initiative to help troubled homeowners, potentially refinancing several million of them into fresh government-backed mortgages with lower payments.

The escalation in aid comes as the administration is under rising pressure from Congress to resolve the foreclosure crisis, which has put millions of Americans at risk of losing their homes.

A major element of the new program, according to several sources who spoke on the condition of anonymity, will be to encourage lenders to write down the value of loans for borrowers in modification programs. Until now, modification programs have focused on lowering interest rates.

Another major element will involve the government, through the Federal Housing Administration, refinancing loans from borrowers whose home value has sunk below what they owe on it.

More than 11 million homeowners are in this position, known as being underwater.

That aspect of the plan would apply even to borrowers who have not fallen behind in their mortgage payments.

Investors who own the loans would have to swallow losses but would probably be assured of getting more in the long run than if the borrowers went into foreclosure.

The FHA would insure the new loans against the risk of default.

Many details of the administration’s plan remained unclear Thursday night, including the precise scope of the new programs and the number of homeowners likely to qualify.

This much was clear, however:

The plan could put taxpayers at increased risk.

If many additional borrowers move into FHA loans, a new downturn in the housing market could send that government agency into the red.

The FHA has already expanded its mortgage-guarantee program substantially in the last three years as the housing crisis deepened, insuring more than 6 million borrowers.

Sources said the agency would receive $14 billion in funds from the Troubled Asset Relief Program, cash it could dangle in front of financial institutions as incentives to participate in the new program.

A third element of the White House’s housing program will require lenders to offer unemployed borrowers a reduction in their payments for a minimum of three months.

An administration official declined to speak on the record about the new programs but said they would “better assist responsible homeowners who have been affected by the economic crisis through no fault of their own.”

The plan would essentially supplant the government’s earlier mortgage modification plan, announced a year ago with great fanfare.

It has resulted in fewer than 200,000 people getting permanent new loans.

As many as 7 million borrowers are seriously delinquent on their loans and at risk of foreclosure.

The news was greeted with cautious enthusiasm by groups that have tracked the foreclosure crisis and tried to assist communities and underwater homebuyers.

“It sounds really good, and I’m not used to saying that,” said Kevin Stein of the California Reinvestment Coalition in San Francisco.

He said “the two main weaknesses” of the existing federal Home Affordable Modification Program were that,

It didn’t reduce the mortgages of underwater homeowners,

And, didn’t help borrowers who were underemployed or unemployed and would have difficulty qualifying for a loan modification.

“It seems they have taken these issues to heart,” Stein said.

“It’s unclear how many people will qualify – that’s the one hesitation. We’re not sure how broadly these initiatives will reach.”

Martin Eichner, with Project Sentinel in Sunnyvale, said the proposals sound good but he would like to see the details.

“It has to help significant numbers of people and there has to be enforcement,” Eichner said.

“These plans always look great in the first news release, but we’ve often been disappointed in the performance. To the extent that lenders write down principal balances, that would be a significant improvement,” he said.

Eichner said the home affordable effort also needs an enforcement mechanism.

“Without any real consequences, day to day we see lenders ignoring what we think are pretty clear rules under the current making home affordable program,”

While the number of foreclosure-related filings is beginning to flatten or decline, the number of borrowers who are seriously distressed is rising.

In the fourth quarter, the number of households at least 90 days past due on their mortgages swelled by 270,000, according to a report issued Thursday by the Office of the Comptroller of the Currency.

“The government is seeking to persuade people to stay in their homes by aligning the mortgage debt with the asset value, which is the only viable path to real housing stability,” said one person who was briefed on the government’s plans.

Several people who described the plans would speak only on condition of anonymity, since they had not been authorized to disclose details ahead of a White House briefing scheduled for this morning.”

————————————————————————————————–

2. Editorial in the Bay Area News Group – March 29, 2010 – Thank you.

www.mercurynews.com/opinion:

Titled – Foreclosure plan has carrots but needs sticks –

“Eight million households are behind in their payments or in foreclosure. But the Making Home Affordable programs has modified just 200,000 loans.

Forgive us for not jumping up and down with delight over the Obama administration’s latest plan, announced Friday, to help stem the tide of foreclosures.

The changes will help those who are unemployed, underwater or both.

But they have come so late that it’s difficult to muster much enthusiasm.

Banks participation in solving this problem has been optional for too long.

The government must require those who caused this debacle to do more to end it.

Since the foreclosure crisis began three years ago, 6.6 million families have lost their homes, according to the Center for Responsible Lending.

The problem is not getting better.

Eight million households are behind in their payments or foreclosure, and

One in five are underwater – they owe more on their mortgages than their homes are worth.

The administration’s primary tool against foreclosures, the year-old Making Home Affordable partnership with lenders, has so far modified the terms of just 200,000 loans. It is not up to this enormous task.

But the changes announced Friday have the potential to improve that record.

The program will now be open to the unemployed, who previously couldn’t qualify but are a primary victim of foreclosures.

They’ll be eligible to get up to six months’ forbearance and to have their payments lowered to reflect their reduced income, at least for a short time.

Those who owe more than their homes are worth – in California, that’s more than a third of borrowers – may finally be able to get their loan principals reduced.

This much-needed shift in approach addresses another key driver of foreclosure.

Lenders will get incentives to reduce the amount owed.

Borrowers who are current on their payments but underwater – prime candidates to walk away from their mortgages and further weaken the housing market – could refinance into a cheaper government loan.

All of this will help. But the main problem with the government effort remains:

It’s all carrots, no sticks.

Consumer advocates have been pushing Congress for years to allow bankruptcy judges to modify loan terms for primary residences, which could reduce foreclosures up to 20 percent.

The financial industry’s army of lobbyists has managed to beat back that idea, known as “cramdown,” saying it can deal with the problem on its own and through Making Home Affordable.

That’s clearly not the case, because of malice or incompetence.

It would be wonderful if politicians gave the same consideration to desperate homeowners that they do to banks.

Most everyone facing foreclosure nowadays did nothing wrong – they’re simply caught in the cascading wave that began with the subprime mortgage crisis.

The same can’t be said of the banks that got us into this mess and then took billions of taxpayer bailouts.

Allowing judges to modify loans in bankruptcy would add structure to an overwhelmed system.

Reasonable compromises worked out in court would set precedents for lenders to follow.

If they didn’t, they could be forced to by a judge.

Judges have this power for second homes.

There’s no good reason they shouldn’t have it for every home.”
————————————————————————————————–
Comment – Review and Analysis is in progress and will be presented shortly.

Thank you for your patience.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy, Featured | Leave a Comment 

« Previous Page — Next Page »

PadminiArhant.com