Bailouts are in the news every single day, but more and more homeowners and those hoping to qualify for a mortgage loan any time soon are wondering what is in it for them. When Treasury Secretary Geithner finally came out with a mortgage plan and bank bailout scheme, it seemed like it might have held the answers needed, but unfortunately the wording did not help those not well versed in legalese. This keeps those with an eye on mortgage rates wonder what the Obama Administration truly offers to do for homeowners.

In an effort to explain the plans the Obama Administration has for homeowners and those aspiring to hold a mortgage soon, Mr. Geithner held a press conference that discussed TARP, the current status of the mortgage industry, and also the urgent need to halt runaway foreclosures. In stark contrast to the protestations of change stood the seemingly indiscriminate bailout package that supplied much needed funds to struggling financial organizations without actual oversight.

Rather than compelling bankers to turn around and use the funds to lend to consumers in dire need of help, recent scandals have revealed that a good portion of the funds has been allocated to back pay and also bonus payments promised to employees and officers of the corporations. In other cases, these funds have been used to shore up the banks’ position in the business world and to ensure that they would be competitive and could hold on to some investments that perhaps otherwise would have had to be liquidated.

Consumers, in the meantime, found themselves on the short end of the stick. Elizabeth Warren, in charge of TARP oversight, reported back that taxpayers actually lost about $80 billion in the recent bailout transactions and rather than helping consumers, banks took the money and ran. Business that failed to receive loans closed their doors or cut jobs, while homeowners that could not get the mortgage bailout they required are facing bankruptcy. Those who would have purchased a home had to move on and continue renting, while banks have greatly curtailed their mortgage lending practices.

In the meantime, the Obama Administration is working on its deal to ensure a refinance package that allows homeowners in danger of foreclosure to get out from under oppressive mortgage packets. At this stage it is uncertain what the actual fiscal impact will be, whether the US Treasury is going to discover the one surefire means of fixing and overseeing a banking system that has been out of controlled for a prolonged period of time, and of course what the lending lull will continue to do to the American economy.

It is a sad state of affairs that banks feel little gratitude to the American taxpayers for the lifesaving infusions of cash into the companies and corporations, and rather than returning the favor are looking for ways to make lending even harder. On the flipside, the fact that banks have been burned by consumers fudging numbers and a mortgage industry bent on helping them, most likely accounts for the reasons why there seems to be little love lost between banks and loan hungry consumers.

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Author's Bio: 

Krista Scruggs is an article contributor to Lender411.com. Whether you are looking for fixed mortgage rates, variable adjustable mortgage rates (ARM), jumbo loans,interest only or even specialized mortgages such as bad credit mortgage or reverse mortgages, we will match you with up to 4 qualified lenders with 4 mortgage quotes. and any other unique situation you might be in), we will match you up with the right company.