HUD and Obama under fire
The Neighborhood Assistance Corporation of America (NACA), who claims to be the largest homeownership organization in America is criticizing President Obama and the U.S. Department of Housing and Urban Development claiming both have been ineffective in helping the American homeowners.
NACA said it has joined homeowners with government backed loans to file a lawsuit against HUD for “trying to silence and undermine NACA” and American homeowners and putting them at risk for foreclosure.
NACA is known for criticizing Obama’s foreclosure prevention programs and note that “the government mortgage programs which constitute 80% of the total mortgages (i.e. FHA, VA, Fannie Mae and Freddie Mac) are the least effective in preventing foreclosures and in restructuring/modifying mortgages to make them affordable.”
The organization says that because of the ineffectiveness of these programs, the American taxpayers are foreclosing on themselves. “It’s the height of hypocrisy for our President and HUD Secretary Shaun Donovan to pretend they are working to keep people in their homes when they control the most problematic loans,” said NACA CEO Bruce Marks.
NACA points to veterans as being mistreated. “This contrast is most appalling when veterans, those willing to pay the ultimate sacrifice, are often able to modify a non-government mortgage, as low as 2% permanently and/or a principal reduction, while veterans with a VA mortgage cannot achieve this and must meet nearly impossible conditions to qualify for a loan modification. One of the VA conditions requires the military member to be significantly delinquent which could jeopardize their clearance and job in the armed services.”
NACA suing HUD
NACA has sued HUD “for what amounts to political retaliation and government interference putting families facing foreclosure at risk” as HUD has withheld NACA’s grants which NACA calls blackmail.
“NACA with hundreds of thousands of members will not be silenced. We will start by stopping our veteran homeowners from losing their American Dream. NACA will continue to lead the campaign including our extraordinary Save-the-Dream events to protect our veterans here at home and the millions of homeowners at risk of foreclosure.”
July 20, 2011 at 10:30 am
NACA? I thought they worked for the banks
July 20, 2011 at 12:09 pm
Lawsuits like this make me yearn for the British system of Loser Pays.