FBN points out huge holes in the rushed mortgage bailout

Mark Lieberman pointed out today that there are two huge holes in Obama’s so-called plan. (Apologies to Helen Thomas.) The plan was based on an average of $400 reduction needed to get to workable ratios, with that amount split between the government (i.e. you and me) and the lenders. But two critical oversights that anyone with half a brain in Washington should have caught are:

  • It’s based on PI, not PITI.
  • It doesn’t take into account home equity loans/LOCs.

He says that when you factor those in, the relief needed to get to workable ratios is $552.