HOME LOAN MORTGAGES:How Helpful Are The Banks

President Obama is signing the signing the 787 billion-dollar (stimulus) package of investment and tax cuts tomorrow to the delight and satisfaction of millions across the nation;among them are homeowners,businessowners and banks.
Wall Street,which last year got a jumbo portion of financing from taxpayer's monies is expecting an additional infusion of cash from this current package, so too, are the auto makers and the Banks,which themselves already got some cash.
The prevailing feeling on Main Street is that help is on the way - with the additional cash the Banks are receiving, homeowners are less likely to loose their homes to foreclosure. In fact,only recently, Citigroup and JP Morgan-Chase along with Mortgage Finance giants Freddie Mac and Fannie Mae announced the imposition of moritoriums on home foreclosures.
This sentiment was reinforced over the weeekend when, in a nationally televised interview, Senior Obama adviser, David Axelrod informed us that the President would on Wednesday of this week, announce a plan that is aimed at stemming foreclosures and provide immediate help to homeowners who are "right on the edge" of foreclosure, and ultimately help in "raising home values that are plummeting."
That same day House Financial Services Chairman, Barney Frank (D.-Mass) told us on a competing national network, that $50 billion (for the program)would not be enough. The Congressman went on to say, however, that he "...in fairness...won't know that for a while.." He continued "...we will begin (the process),..if in fact,by the time we've used $50 billion, it turns out we can use more,then I believe the Congress would be responsive..."
Meanwhile Mr. Axelrod was indicating, in his interview, that the $50 billion mortgage bailout could double to $100 billion.
Is this music to the ears of Banks, or is it? Think for a moment what these bankers are discussing in their boardrooms as they sip their frappucino. Think of the glee they must feel as they tee off at their local country club - all that money coming their way.
Why? Tell me now - would these very unpopular people, overburdened with nonperforming assets make it a priority to assist homeowners with the restructuring and modification of their mortgage loans, when they know the Federal Government is initiating plans to bail them out.
Obviously the most troubled of these banks are the ones with the most troubled assets - it follows they not only expect to recieve the first of the bail out monies, but the most of it - can you understand then why it is in their best interest to hold on to as much of the bad paper for as long as they can? Can you now understand why some of them refuse to assist the homeowner who is seeking relief -telling them that unless they have missed payments , help is not possible.
As he fulfills his promise to use government to assist struggling homeowners avoid foreclosure, it will be interesting to see how the President deal with the concerns of the Main Street and the collusions of Wall Street.