Loan News
“House Democrats passed bills that they know will never become law,” said Tony Fratto, the deputy press secretary. “Most Americans understand that we shouldn’t create a taxpayer-funded bailout for lenders and speculators.”
Mr. Bush’s veto threat on Wednesday was interpreted by many lawmakers as a signal to Senate Republicans to kill the housing legislation.
Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Banking Committee, has been struggling to get Republican support for a similar bill.
http://www.revver.com/video/860064/refinance-bills-rushing-through-congress/
http://www.revver.com/video/860055/cash-out-refinance/
http://www.revver.com/video/855555/refinance-recovery-in-sight/
Several Republican members of Mr. Dodd’s committee represent states where foreclosures are not a major problem, including the senior Republican, Senator Richard C. Shelby of Alabama. Even Senator Mel Martinez, a Florida Republican who is a member of the committee, has expressed reluctance in recent days to oppose the Bush administration, which says it can help more homeowners without new legislation.
The centerpiece of the bill is a two-year program for the Federal Housing Administration (FHA) to offer $300 billion in new loan guarantees to help refinance distressed mortgages.
To participate, lenders would have to agree to forgive portions of troubled loans, while borrowers would have to meet certain indebtedness standards and pledge they did not intentionally default on a loan to obtain assistance.
The White House has vowed to veto the bill, despite its inclusion of two major provisions backed by President George W. Bush and tacit support voiced this week for another section by Federal Reserve Chairman Ben Bernanke.
The bill was put together by Democratic Rep. Barney Frank of Massachusetts.
In addition to paying interest and principal, the borrower would pay a monthly insurance fee, which would go into a fund to protect taxpayers from losses. The Congressional Budget Office has estimated that up to 500,000 refinancings would be generated over the next five years, at a cost to taxpayers around $2.7 billion.
To sweeten the package for the administration, Mr. Frank’s legislation included two measures that Mr. Bush has long demanded — a modernization of the Federal Housing Administration and tighter regulation of the government-sponsored lenders Fannie Mae and Freddie Mac.
Mr. Frank made several other changes while drafting the bill to address concerns raised by the White House, but Mr. Bush and aides have denounced the legislation as a bailout for irresponsible home buyers and greedy lenders.
After Thursday’s vote, the White House scolded Democrats for persisting with their effort.
Why are those who are prudent with their financiers being asked to bail out those who gambled and lost?
This makes no economic sense to me.
Yeah, but it seems so compassionate.
I hope this goes nowhere.
The following bill was overwhelmingly passed by Democrats.
Big surprise.
Anything for more government intervention.
Tags: Finances