Barney Frank Won't Help Liar Loan Borrowers

This one is from the dog lays down with cat genre. Barney Frank said today that he does have limits when it comes to loan modifications.

From Housing Wire:

Reducing the amount of foreclosures will play a key role in stabilizing the financial crisis, but the government should avoid giving a “free ride” to any borrower who could not have afforded a mortgage to begin with, said Barney Frank, D-Mass., chairman of the House Committee on Financial Services, at a hearing Wednesday. While the foreclosure situation might necessitate legislation, “there is, in my judgment, zero likelihood that taxpayer dollars will go to those who should never have had loans in the first place,” Frank said, according to a CNN article.

Now to be perfectly honest, I haven't seen the actual quote just the paraphrasing that I included above. Since it doesn't use the word never in the context of bailing out irresponsible owners we can't really hold him to it. Also note that he said there is "zero likelihood that taxpayer dollars..." should be used. Barney wouldn't be where he is if he hadn't long ago learned how to phrase things so that he can't be held to what he says. He didn't say he might not strong arm someone else into using their dollars to bail out the miscreants just that he didn't see taxpayer dollars being used. And since taxpayer dollars are flying all over the universe right now who can say if they were or were not used to bail out the evil doers.

I think we'll just add this to my list of BF's when I get a second. This guy hasn't had a scintilla of Fannie and Freddie muck stick to him even though he was in with them up to his neck. I doubt that we should put a lot of faith in this statement.