Just in case you missed this article in The Hill, the headline will save you from any suspense: Banks to benefit most from White House program to help fight foreclosures.

Here’s the bad news:

“Banks will get the biggest benefit from an Obama administration housing program designed to help unemployed homeowners escape foreclosure. Housing experts expressed concern that banks, not homeowners, will be helped by the White House’s $3 billion funding infusion — $2 billion from the Treasury Department and another $1 billion from the Housing and Urban Development Department — going to those states hit hardest by the housing market crash and unemployment.”

This is no surprise, as we have mentioned repeatedly (here, here, here and here), the so-called mods and abatement programs are thinly disguised back door bailouts for banks.

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Previously:

More Foreclosures, Please . . . (March 25th, 2010)

Treasury Looks to Mandate Foreclosure Abatements, Mortgage Mods (February 23rd, 2010)

Fannie And Freddie And the Backdoor Bank Bailout (May 12th, 2010)

GSEs: $1 Trillion Dumping Ground for Bad Bank Loans (June 14th, 2010)

Source:

Banks to benefit most from White House program to help fight foreclosures

Vicki Needham

The Hill 08/15/10

http://thehill.com/blogs/on-the-money/banking-financial-institutions/114349-banks-to-benefit-most-from-white-house-program-to-stave-off-foreclo