Biden Cannot Escape His Part In The Foreclosure Crisis
September 5th, 2008
Senator Joseph Biden is the chosen vice president nominee of Democratic presidential candidate, Barack Obama. But there are facts that show Biden cannot escape his part in the foreclosure crisis.
Experts accuse Biden of being the cause for many Americans losing their houses to foreclosures. Two studies have concluded that the foreclosure crisis worsened with the passing of a law in 2005 that overhauled the laws pertaining to bankruptcy. This bill was championed by Biden. The banking and credit industry lobby however are not willing to accept this line of thinking.
The Republicans in the Congress was the main drive behind the passing of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Biden riding on thousands of dollars as donation coming in from the industry gave full support to the bill and worked hard to get the support of Democrats. His initial and loud vocal prop up for the bill was of vital importance during the initial stages of the introduction of the bill, opines Travis Plunkett advocating for Consumer Federation that had opposed the move. Plunkett alleges that Biden “went out of his way to undermine criticism of the legislation”. It was his efforts that persuaded many Democrats to give the green signal to the bill.
Biden’s office declined to comment on this view although questions were raised whether the Obama campaign would find Biden’s earlier posture a liability while talking about economic measures David Wade spokesperson for the Obama campaign said “Barack Obama and Joe Biden have real solutions for struggling families in danger of losing their homes because of the Bush economy and abusive lending practices.”
The law, BAPACPA, has been held directly accountable for the increase in foreclosure numbers since the closing months of 2005, reported a study conducted by Credit Suisse. These sentiments were echoed by another survey conducted by David Bernstein of the US Treasury department. The law has forced 200,000 house owners into foreclosures since it made its debut. It was not an accident but the law was purposefully introduced to trap the hapless borrowers.
Dismissing these claims as junk Corwin Corwin of ABA said, “trying to tie the foreclosure crisis to the bill is a stretch.” He described the report of Credit Suisse as “junk” and that the study of Bernstein was not worth “the paper it was written on.”
- Fewer Foreclosures Among Low-cost Brooklyn Homes
- Bank of America is a Lagging Behind in Loan Modifications to Prevent Foreclosures
- The Aftermath of the Housing Boom is Followed by Foreclosure Doom in Homestead
- Lenders Being Legally Challenged for Activating Predatory Lending
- Foreclosures Have Made Life for CEO’s Expensive and Fraught With Fear
- With Foreclosures and Unemployment Continuing it is Doubtful if Recession is Over
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