HUD’s Donovan defends mortgage relief

Housing and Urban Development Secretary Shaun Donovan
defended the Obama administration’s mortgage relief plan unveiled this week,
arguing it could help as many as 5 million Americans refinance their home
loans.

After a week of scrutiny of the plan coming from some
corners, Donovan asserted that critics should take a moment to fully examine
the plan.

{mosads}“We’re going to allow folks who are playing by the
rules…to refinance,” Donovan said on CBS’s “Face the Nation.” “Only
people who are current on their mortgage can qualify.”

Donovan insisted that the administration would have “very
strict” rules to ensure that only responsible homeowners will have the
opportunity to receive relief in the program.

“We don’t think that bankruptcy court is an answer to the
problem,” the secretary said, estimating the plan would help 4 to 5 million
homeowners refinance their mortgages. “We think we’ve got to get these things
worked out before they reach court.”

Ohio Gov. Ted Strickland (D) said on the show that the economic
problems leading to such a crisis were “unprecedented,” as he appeared with other governors to discuss their states’ woes.

“The foreclosure problem is a huge problem in Ohio,”
Strickland said. “That’s why I believe the response of the federal government
is so critically important.”

Indiana Gov. Mitch Daniels (R), who, unlike some other
conservative governors, will accept the federal stimulus dollars, said that
while the stimulus is imperfect, it would help power states’ investments in the
future.

“I’ve studiously stayed out of the debate about the
merits or demerits about this plan,” Daniels said. “There are some very
legitimate concerns about this bill and its massive amounts of spending on
things that have nothing to do with stimulating the economy.”

“I think we’re going to create a lot of jobs. I think
it’s actually going to make a big difference in the economy,” New Jersey Gov.
John Corzine (D) argued.

The governors made the appearance amidst a number of
other states’ chief executives making the rounds on the Sunday morning talk
circuit. Most of the governors are in Washington this weekend for a National
Governors Association meeting.