ALG Blasts $1.27 trillion Campaign Slush Fund Refinance Proposal

October 25, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement condemning an Obama Administration proposal to allow underwater borrowers of government-backed mortgages to refinance:

By some estimates, a massive refinancing program for underwater borrowers of government-backed mortgages could cost as much as $85 billion a year. That would mean $85 billion less is collected in interest payments, resulting in those losses being imposed on Fannie and Freddie — on an annual basis. And since taxpayers are backing the GSEs, that will mean $85 billion added to the national debt every year. Assuming an average maturity of 15 years, that means the total cost of Obama’s new program could be more than $1.27 trillion.

“Moreover, this will do nothing about the more-than $700 billion of negative equity that is out there. Those who qualify will still owe more on their homes than they are worth. They will just have a slightly lower interest rate. It’s a bribe. The Obama Administration is attempting to shore up its wilting reelection prospects by throwing money at favored constituencies. It’s nothing more than a $1.27 trillion slush fund to reelect Obama.”

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at to arrange an interview with ALG President Bill Wilson.