mr funny
31-03-08, 12:11
March 31, 2008
Bush readying plan to rescue home owners
Proposal encourages lenders to forgive part of debt and refinance mortgages
WASHINGTON - THE Bush administration is finalising a plan to rescue thousands of home owners facing foreclosure by helping them refinance into more affordable loans, the Washington Post said.
The proposal is aimed at assisting borrowers who owe their banks more than their homes are worth because of declining home prices, the newspaper reported in its Saturday edition, citing unnamed government officials.
If enacted, it would mark the first time the White House is committing federal dollars to help the most hard-pressed borrowers.
President George W. Bush said on Saturday that the government would expand efforts to help home owners avoid foreclosure.
The White House is 'committed to building on' its programme to help borrowers refinance mortgages, he said in a weekly radio address.
Officials are weighing measures to 'provide some additional help to some home owners', White House spokesman Tony Fratto said.
Under the plan, the Federal Housing Administration (FHA) would encourage lenders to forgive a portion of these loans and issue new, smaller loans in exchange for the backing of the US government, the Post said.
Two leading Democratic lawmakers have proposed a similar programme to expand the FHA, so that it absorbs more failing mortgages once lenders have erased some of the loan amount.
Senate Banking Committee chairman Christopher Dodd and House Financial Services Committee chairman Barney Frank are expected to push their FHA plan when lawmakers return to Washington this week.
Bush administration officials have told the Post that they believe they can accomplish some of the same goals of the legislation through regulatory changes, though important details need to be nailed down.
Administration officials told the Post they opposed some aspects of Mr Frank's legislation, including a provision to spend US$10 billion (S$13.8 billion) buying vacant foreclosed homes.
The plan could dampen criticism from Democrats, who say the administration has so far been more concerned with helping Wall Street than with aiding those losing their homes in the foreclosure crisis that threatens to push the US economy into a deep recession.
But it could agitate conservatives, who might view the programme as another government bailout, the Post said.
The plan is unlikely to be unveiled before Mr Bush returns from a trip to Europe this week, officials told the paper.
REUTERS, BLOOMBERG NEWS
Bush readying plan to rescue home owners
Proposal encourages lenders to forgive part of debt and refinance mortgages
WASHINGTON - THE Bush administration is finalising a plan to rescue thousands of home owners facing foreclosure by helping them refinance into more affordable loans, the Washington Post said.
The proposal is aimed at assisting borrowers who owe their banks more than their homes are worth because of declining home prices, the newspaper reported in its Saturday edition, citing unnamed government officials.
If enacted, it would mark the first time the White House is committing federal dollars to help the most hard-pressed borrowers.
President George W. Bush said on Saturday that the government would expand efforts to help home owners avoid foreclosure.
The White House is 'committed to building on' its programme to help borrowers refinance mortgages, he said in a weekly radio address.
Officials are weighing measures to 'provide some additional help to some home owners', White House spokesman Tony Fratto said.
Under the plan, the Federal Housing Administration (FHA) would encourage lenders to forgive a portion of these loans and issue new, smaller loans in exchange for the backing of the US government, the Post said.
Two leading Democratic lawmakers have proposed a similar programme to expand the FHA, so that it absorbs more failing mortgages once lenders have erased some of the loan amount.
Senate Banking Committee chairman Christopher Dodd and House Financial Services Committee chairman Barney Frank are expected to push their FHA plan when lawmakers return to Washington this week.
Bush administration officials have told the Post that they believe they can accomplish some of the same goals of the legislation through regulatory changes, though important details need to be nailed down.
Administration officials told the Post they opposed some aspects of Mr Frank's legislation, including a provision to spend US$10 billion (S$13.8 billion) buying vacant foreclosed homes.
The plan could dampen criticism from Democrats, who say the administration has so far been more concerned with helping Wall Street than with aiding those losing their homes in the foreclosure crisis that threatens to push the US economy into a deep recession.
But it could agitate conservatives, who might view the programme as another government bailout, the Post said.
The plan is unlikely to be unveiled before Mr Bush returns from a trip to Europe this week, officials told the paper.
REUTERS, BLOOMBERG NEWS