Boehner On Refi Plan: Bad Idea, Obama!

Boehner On Refi Plan: Bad Idea, Obama! Any hope for bipartisan support of President Obama's mortgage refinance proposal was squashed by House Speaker John Boehner, who dismissed the new initiative as a continuation of failed policies.

CNN reports that the Ohio Republican told a press conference on Capitol Hill yesterday that the Obama administration is recycling housing policy programs that have yet to score positive results.

‘We've done this at least four times, where there's some new government program to help homeowners who have trouble with their mortgages," Boehner said. "None of these programs have worked, and I don't know why anyone would think that this next idea's going to work – and all they've done is delay the clearing of the market.’

Boehner echoed comments made by Republican presidential hopeful Mitt Romney that the federal government should step back and allow the housing market should be allowed to heal itself.

‘The sooner the market clears and we understand where the prices really are will be the most important thing we can do in order to improve home values around the country,’ Boehner said.

The president's new proposal is expected to carry a price tag between $5 billion and $10 billion, which would be paid through a new fee charged to the largest financial institutions. However, Boehner and congressional Republicans have previously rejected attempts to pay for new federal programs by imposing additional fees on financial institutions.

For his part, President Obama acknowledged again that his previous mortgage financing programs fell short of expectations.

‘I'll be honest – the programs that we put forward haven't worked at the scale that we hoped,’ Obama said during a speech at a community center in Virginia. ‘Not as many people have taken advantage of it as we wanted.’

However, the president vehemently disagreed with the notion of allowing the market to correct itself without government intervention.

‘It is wrong for anybody to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom,’ he said. ‘I refuse to accept that, and so do the American people.’


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