Paulson Opposes Blanket Mortgage Rescue Programs
- Feb 29, 2008
Chicago–Treasury Secretary Henry Paulson told a crowd at the Economic Club of Chicago Thursday that he does not support a government-backed homeowner bailout, the Chicago Tribune reports.Less than 2 percent of home mortgages are in foreclosure, Paulson said.”So, while some in Washington are proposing big interventions, most of the proposals I’ve seen would do more harm than good,” he said. “I’m not interested in bailing out investors, lenders and speculators. I’m focusing on solutions targeted at struggling homeowners who want to keep their homes.”In addition, Paulson said homeowners are responsible for asking for help, and that if a home’s value has dropped below the mortgage amount, it doesn’t mean homeowners can stop payments. “Homeowners who can afford their mortgage should honor their obligations. And nearly all do,” he said.