That sounds good in theory. I have had many seniors come to me after they were denied a HAMP modification. They all owed more than their homes were worth and Fannie Mae and Freddie Mac are extremely reluctant to offer principle reductions to qualify these senior homeowners for a reverse mortgage. In the 10 loans I have submitted to Fannie Mae and Freddie Mac for principle reduction one was approved from Freddie Mac. I was working with one homeowner who whose home was uninsurable due to the condition of the roof. I fought with Chase and Freddie Mac for six months on this issue. I corresponded with senior executives from both companies and their solution was to place forced insurance on the home and put the homeowner in a principle forbearance loan modification. The roof now has a hole in it and the homeowners don’t have the money to repair it but the seniors living conditions were not a concern to Freddie Mac and Chase. Fannie Mae is no better. I had senior homeowner that was placed in a loan modification from Fannie Mae and defaulted. Her home went to sheriff’s sale, in Michigan we have a six month right of redemption, and we tried to negotiate a principle reduction. Given this homeowners circumstances the principle reduction and reverse mortgage was the best long term solution. Fannie Mae would not allow a principle reduction because she had defaulted on the original modification. I sent them detailed financial statements and letters of explanation, backed by her physician, explaining why she had defaulted and showing that the only way she could afford to stay in the home long term was to eliminate her mortgage payment. The answer I received in response to my plea to help this homeowner bordered on being vindictive. Given all of the rhetoric from the government about protecting the seniors their best efforts would be to clean up their own house, namely Fannie Mae and Freddie Mac.

I still can't get over the fact that our government is pouring billions into loan modifications yet at the same time they're pulling back from the reverse mortgage, raising fees and lowering benefits for seniors.

This Administration has little accountability to the American people. It promised home programs that would save millions of homes. Yet it has not only failed but it financially attacks the one program for senior homeowners that provides real hope, HECMs.

During the troubled middle and latter years of the Clinton Administration, Presidential Advisor Lloyd Cutler led that Administration in creating responsible and substantive programs. It is obvious that Chief of Staff Rahm Emanuel is not doing the same.

This Administration needs a rash dose of reality.