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President Barack Obama hit on a number of points in his third State of the Union Tuesday night, in a speech The Washington Post characterizes as a "confrontation wrapped in kumbaya." The New York Times says Obama pledged "to use government power to balance the scale between America's rich and the rest of the public." Those government efforts include newly recommended remedies for what ails the housing industry. Obama said he would send a proposal to Congress for more mortgage refinancings to lower rates for homeowners current on payments, Reuters reports.
New DOJ mortgage investigation
Obama also proposed the Justice Department further investigate "the abusive lending and packaging of risky mortgages," The Hill reports. Bloomberg says New York Attorney General Eric Schneiderman will co-chair the investigatory unit, along with DOJ, Securities and Exchange Commission and Internal Revenue Service officials. The president made no direct mention of the proposed attorneys general settlement with the country's five biggest banks. Schneiderman previously said a settlement shouldn't shield banks from claims not yet fully investigated.
Romney hits Gingrich on Freddie contract
Republican presidential candidate Mitt Romney again took Newt Gingrich to task for his work with Freddie Mac, this time in front of a foreclosed Florida home. ABC News reports Romney called Freddie Mac and Fannie Mae "government-sponsored enemies" and "are a large reason our housing crisis has occurred." Gingrich's consulting firm released a second contract with Freddie Mac Tuesday night, Bloomberg reports. The contract, first signed in 1999, required him to work with the mortgage giant's top lobbyist "to engage in discussions" and "to meet with major stakeholders" to discuss what could "contribute to the achievement" of Freddie's business goals. It also said "nothing herein is or shall be construed as an agreement to provide lobbying services."
-- Andrew Scoggin
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May 30 2012 - 7:30amChallenger Job-Cut Report
