Posted on 05/08/2008 6:55:05 AM PDT by posterchild
WASHINGTON - Strapped homeowners could refinance into government-backed mortgages and states would get money to deal with foreclosed property under Democrats' housing aid plan.
The measures, slated for votes Thursday, constitute the most significant action Congress has taken to date to address the housing crisis that's at the center of the nation's economic woes.
President Bush has threatened to veto both measures, which he says reward lenders and speculators. Democrats counter that the bills will head off hundreds of thousands of foreclosures, stabilize the shaky housing market, and prevent neighborhood blight.
The centerpiece of their plan is a bill by Rep. Barney Frank, D-Mass., the House Financial Services Committee chairman, to have the Federal Housing Administration relax its standards and back up to $300 billion in more affordable, fixed-rate loans for borrowers currently too financially strapped to qualify.
Those homeowners could refinance into new loans if their lenders agreed to take substantial losses on the original mortgages. Borrowers would have to show they could afford to make payments on the new loans. They would have to share with FHA at least half of their proceeds if they profited from selling or refinancing again.
The plan is projected to help roughly 500,000 borrowers at a cost of $2.7 billion over the next five years.
(Excerpt) Read more at news.yahoo.com ...
Why do I picture some liberal arts elitist feminazi when I see a name like that from an AP reporter?
I don’t believe there should be any bailouts.
Let the greedy and the stupid learn a lesson.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
A lot of these people were irresponsible in buying their 2nd, 3rd, 4th, and 5th homes. A bailout is still an ugly idea either way.
I agree. There is no reason why those of us who live within our means should pay for others to CONTINUE living beyond their means.
I might be OT here, but as a responsible renter I get angry at the occasional poster who believes only property owners should have the right to vote-as if renters are second class citizens lacking proper discernment.
Many renters were smart enough to know better and stay out of these risky loans.
Let them crash and burn, Mr President!
I had to chuckle to myself while writing out this month’s mortgage check. “Here I go, paying it on time...again...as I’ve always done...”
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