It appears quite clear to me that the current national leadership has adopted a new policy in its treatment of senior Americans.
Our congressional leaders and the White House have dealt out billions of dollars to major corporations. At the same time, they have done little to help individuals, especially seniors.
For the next two years, perhaps longer, Social Security recipients will not receive a cost of living increase. In prior blogs, I have aired my frustration with Congress and their refusal to subsidize the HUD reverse mortgage program. In so doing, Congress has forced HUD to deliver a 10% haircut to the benefits available under the HUD reverse mortgage program.
Since the inception of the HUD reverse mortgage program in 1989, HUD has made over $9 billion by providing their mandatory HUD mortgage insurance (MIP). Therefore, it seems fair and reasonable that our lawmakers could have easily seen fit to provide the $800 million subsidy requested by HUD. An $800 million request on a program that has brought in $9 billion seems like a “no brainer” even for our leaders on Capital Hill.
Seniors are often told that they don’t need a reverse mortgage because there are other options. Selling is one option but in this market is that really a viable one? How many seniors will be forced to ask family for support or draw down on their retirement accounts until there is no more? How many seniors will be forced to witness their home of many years fall into foreclosure?
We see the tea parties on TV, we have witnessed the demonstrations over federal spending that is out of control, and we hear about the irresponsible actions of the “Congressional gang” that appears to believe that the solution to all our ills lies in spending money that we no longer have. I see the moral outrage building and it is only a matter of time before our senior population declares that they “are mad as hell and aren’t going to take it any more.”
Perhaps the off year election of 2010 will give us the opportunity to usher out the many lawmakers who consistently vote against our senior population.
