Keith Hennessey doesn't believe the Obama administration should use tax dollars to subsidize underwater homeowners with fixed rate mortgages. He highlights a program that would help homeowners with mortgage balances up to $729,750. An illustration of his point:
Imagine twin brothers, each with $180K of annual income. One rents, and the other has a $700,000 mortgage on a home that declined from $800,000 in value to $600,000 in value. Both brothers lose their jobs. Why should the renter pay higher taxes to subsidize his brother’s mortgage payments?Losing a home due to financial hardship is tragic. Does that make it someone else’s responsibility?