Julia Gordon, Senior Policy Counsel for the Center for Responsible Lending, told members of the Troubled Asset Relief Program (TARP) Congressional Oversight Panel on Wednesday:
"As we're here today, mortgage servicers are in the process of foreclosing on over two million families. About three million or so more are just weeks away from receiving a notice of default. Over the next several years, the toxic combination of high unemployment and under-water loans could mean a stunning total of more than 13 million foreclosures."
This was the oversight panel's fourth hearing on the TARP so-called "foreclosure mitigation programs," the so-called HAMP and HARP programs which have stalled, not stopped, foreclosure on less than 500,000 homes, maybe. On the agenda was the utter failure of the Obama administration to stop the economic and social breakdown represented by today's foreclosures, and the nervous recognition that the implosion of the $7 trillion mortgage market under the weight of the gross illegality of mortgage backed securities, "would appear to present systemic risks."
In an implicit hit at President Obama's "let them live in the drainpipes" policy, panel member Damon Silvers, the Associate General Council of the AFL-CIO, noted drily in his opening statement, that "mass foreclosures should no more be encouraged by our public officials than should contagious diseases, or catastrophic floods, or organized crime."
LPAC will be reviewing the full hearing tomorrow.