The Real Deal New York

Housing bailout a “colossal failure”?: VIDEO

Avison Young's Jason Meister says propping up of the market has done more harm than good
February 19, 2014 11:40AM

The housing bailout is a mismanaged program that has resulted in greater foreclosure rates and increased uncertainty among lenders, according to Avison Young broker Jason Meister and Greg Rand, CEO of the real estate investment network OwnAmerica.

“It’s been a colossal failure,” Meister said of the Obama administration’s home affordable modification program, speaking yesterday on Fox Business. By forcing banks to modify loans and lower monthly mortgage payments, the government “artificially propped up” the market, a condition that is not sustainable and in reality has led to more foreclosures, Meister added.

Rand said that because of the modification program, “the lending industry does not know when the next shoe is going to drop.” The government, Rand said, had “harassed” the banks, which were now confused about how to underwrite loans. [Fox Business]  – Hiten Samtani

  • I am not an advocate for the HAMP program but when a homeowner saves 1,000 dollars off their monthly mortgage bill that is literally a life saver.

    • I loathe hypocrites

      Exactly and then they can spend that money elsewhere in the economy. I wonder what their opinion was on the bank bailout? I bet that was a success to them!

      • Yes. I helped some homeowners out in the process. 3 to be specific. That program worked wonderfully.
        They gave my attorney hell over it on his house bc he actually made payments. The unfortunate part of the system is that we reward the people that didn’t pay their mortgage. Not the ones that struggle tooth and nail to make sure the mortgage is paid on time every month.

    • Common Sense

      It is not a “literally a life saver” – don’t be a fool.
      If you can’t afford your house you walk away – you have bad credit for a few years and you move on. So what!!! My sister lost her house – it’s been one of the best things to ever happen to her.

      The entire concept that losing your home is akin to death is asinine and has lead to many, many bad housing policies.
      We would have all been better off if those who couldn’t afford their homes all walked away years ago.

      • JOhnR

        Not everyone reacts the same to loss.

  • Jon Peabody

    Seriously, anybody taking Jason Meister seriously is silly. When did he become an economic analyst? He’s a broker with a Dad who’s a high powered attorney. That doesn’t mean he knows what he is talking about.

  • Garb

    This article fails in every sense to prove its premise… or should I say Jason Meister does. What do you expect from anything with Fox in its name, where opinion is truth… and “news”.

  • JOhnR

    The only reason the Banks need to “mod” or rewrite loans is because they need to legitimize their fraudulent paperwork. Otherwise, the Banks don’t own the loans… trust’s (separate legal entities) own the loans! The Banks get paid to act as “Trustee’s” for the trust’s and as the trust’s “servicer’s” for the loans and as such make around $6,000 for each foreclosure they accomplish (which the trust pays them for!). Our Govt. also pays them for each time the “try” to do a loan mod… just another back door bailout. Since the last post below it is now common knowledge that Well’s Fargo’s “Attorney Foreclosure Manual” has surfaced in which it details, to Wells’s Atty’s just exactly which and how to forge each and every document needed to foreclose… you have to wonder… why would the Atty’s NEED info on how and which doc’s to forge? ANd it has been estimated that if the same money given to the Banks had been given to the homeowners… we would have a Nation of homeowners with paid off houses… that could again refinance them and bring that amount of money back into the economy instead of into the Lender’s CEO’s record Bo