Geithner Responds to Criticism of Housing Plan

Feb 18, 2009 1:03pm

MESA, ARIZ. — At an Obama administration briefing today, ABC News asked Treasury Secretary Tim Geithner about a criticism of the president’s new housing plan, that it provides incentives for lenders and lendees to do what they should be doing anyway — making payments on time, and trying to stave off foreclosures.

"People tried other approaches to help fix this problem and they are not working," Geithner said. "So what we tried to do is put together a more powerful package of incentives and other, ‘inducements,’ I’ll call them, to try to make sure you get a  level of participation and a level of relief in mortgage payments that has not been achieved … so this represents our best judgment of that and you have to look at those costs against the very substantial benefits this will bring to homeowners across America and to the overall economy as a whole."

– jpt

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