White House and U.S. Officials Say a Foreclosure Moratorium would Hurt Homeowners! The Banks Agree! Really? They sure it is NOT the Banks they are Protecting?

You really have to laugh over this!  The White House, Geithner, Banks and other U.S. government officials are saying they are not doing a Foreclosure Moratorium, until all this "paperwork irregularities" are worked out, because it would Hurt Homeowners!! 

But you have to give it to Huffington Post they worded the title of the article:

Would a Foreclosure Moratorium be 'Very Damaging' to Homeowners?

Portions:

The Obama administration is resisting calls for a national foreclosure moratorium amid a foreclosure fraud scandal that has already forced some of the nation's biggest banks to halt foreclosures in every state. Stopping foreclosures, the administration argues, would be bad for homeowners.

"A national moratorium would be very damaging to exactly the kind of people we're trying to protect," Treasury Secretary Tim Geithner said on Wednesday, "because the consequence of that would be in neighborhoods that have been most affected by the foreclosure crisis, where you see lots of houses on the block empty, unoccupied, what it means is those communities will be living longer with houses unoccupied, with more pressure on their house price with the people still in their houses."

Wall Street agrees: "It would be catastrophic to impose a system wide moratorium on all foreclosures and such actions could do damage to the housing market and the economy," the Securities Industry and Financial Markets Association, a Wall Street lobbyshop, said in a statement.

Regardless of the overall trajectory of home prices, consumer advocates said the most damaging thing for homeowners is the current situation. Dean Baker, co-director of the progressive Center for Economic and Policy Research, said in an email to HuffPost that the threat of a foreclosure moratorium would give homeowners leverage to win mortgage modifications while doing nothing to hurt banks.

"What's damaging homeowners is the failure of Secretary Geithner and others in the administration to hold the servicers accountable for breaking the mortgage system and for violating the law. What's damaging is Treasury's failure to create and mandate a loan modification program that would actually help homeowners stay in their homes and stabilize their communities," wrote Rheingold. "What would be helpful would be the imposition of this necessary timeout so that servicers can use this time to learn how to comply with the law and Treasury can finally figure out a solution to the problem of hundreds of thousands or millions of unnecessary foreclosures."