Dodd & Frank: More Public Sponsored Bailouts For Banks & Speculators
FHA announced today... As many as 100,000 borrowers who are as much as three months behind on their mortgages,
have damaged credit histories and owe more than their homes are worth will now be eligible to refinance with a federally insured loan.
The changes, which don't require approval from Congress, would waive the 3% home equity requirement
if lenders are willing to write down the loan balance to meet Federal Housing Administration guidelines.
House Financial Services Chairman Barney Frank, a Democrat from Massachusetts, and Senate Banking Chairman Christopher Dodd, a Democrat representing Connecticut,
are pushing legislation that would allow lenders to sell nonperforming loans to a special, taxpayer-backed pool of as much as $400 billion under FHA.
Representative Edward Royce, a Republican from California:
"We risk transferring this default risk right onto the backs of taxpayers. I think we're headed down the wrong road."
have damaged credit histories and owe more than their homes are worth will now be eligible to refinance with a federally insured loan.
The changes, which don't require approval from Congress, would waive the 3% home equity requirement
if lenders are willing to write down the loan balance to meet Federal Housing Administration guidelines.
House Financial Services Chairman Barney Frank, a Democrat from Massachusetts, and Senate Banking Chairman Christopher Dodd, a Democrat representing Connecticut,
are pushing legislation that would allow lenders to sell nonperforming loans to a special, taxpayer-backed pool of as much as $400 billion under FHA.
Representative Edward Royce, a Republican from California:
"We risk transferring this default risk right onto the backs of taxpayers. I think we're headed down the wrong road."
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