Anti-Foreclosure Bill Passed In Face Of Bush Veto Fears
May 12th, 2008
The House passed the anti-foreclosure bill in face of Bush veto fears. The FHA has been given permission to insure mortgages up to $300 billion. The bill was passed a day after Bush threatened to veto it. It was passed by 266/154 votes. Thus approval was given to the plan of Democrat Barney Frank of Massachusetts. The lenders, on their part, would have to reduce a part of the principal so as to make the loans affordable. Frank is chairperson of the House Financial Services Committee. He said that the country is in a recession and the major cause is because of the sub-prime factor. He was categorical when he stated firmly ‘we do not see any alternatives to this bill’.
The Democrats in the Congress are crossing swords with the Republicans as well as the Bush administration over the steps to be taken to contain foreclosure houses. Bush and his followers are in favour of the lending industry coming forward with voluntary measures as regards loan modification. Against this background he bluntly came forward with the threat of veto.
The Republicans argue that government funds should not be used to reward those who had behaved recklessly. The whole operation is unfair to those borrowers who have been faithful in meeting their loan commitments. Spencer Bachus of Alabama strongly asserted that now the majority of the Americans would have to pay for the reckless financial behaviour of other people. But the Democrats feel that without government interference and funds, the health of neighbourhoods cannot be restored. House owners buckling under heavy mortgages need to be given support.
The proposal of Frank would cost the country $2.7 billion. 50,000 house owners would get help. These are the findings of the Congressional Budge Office. Ben Bernanke, chairperson of the Federal Reserve had full support for the plan. The bill would increase the role played by the FHA as regards insuring mortgages and strengthening the shortcomings noticed in Fannie Mae and Freddie Mac. The latter two government backed mortgage companies are giants in the field of housing loans. Another provision in the bill is that if servicers went ahead with modification programmes they would be provided with a legal shield from being harassed by the parent lender. Frank however admitted that ‘to some extent’ it was a bailing out of borrowers who had taken loans beyond their means.
Search Massachusetts Repo Houses
- Worcester Repo Houses
- Springfield Repo Houses
- Brockton Repo Houses
- Lowell Repo Houses
- Boston Repo Houses
- Lynn Repo Houses
- Poorest Localities in Sacramento County Hardest Hit by Foreclosures
- The Process of Slowing Down Foreclosures
- Funeral Home Not Spared Foreclosure Eviction
- Speculation By Investors Largely Cause Of Foreclosure Crisis
- Uneven Impact of the Foreclosure Crisis
- Foreclosures Increase in Third Quarter While House Prices Fall Further
Related Posts
Popularity: 38% [?]
Posted in
Foreclosure |
Comments
2 Responses to “Anti-Foreclosure Bill Passed In Face Of Bush Veto Fears”
Leave a Reply
Search
- Utah, the New Foreclosure Hub in US
- Foreclosure Times The Best Time To Buy Houses
- In The Middle Of The Raging Foreclosure Crisis The Biggest Coup By The Rich Is Taking Place
- California Realtors Hard Hit By Foreclosures
- Placing The Blame For The Foreclosure Crisis
- Foreclosures Affecting Lifestyles of the Middle Class
May 22nd, 2008 at 9:44 pm
I think it’s about time congress stepped in to help homeowners looking at foreclosures. Of course the homeowners did not make a wise business decision but the banks also have dirty hands. It’s the lenders in the early 2000-2005 giving out money like it was candy which is one of the reasons we are in this position. With out help for homeowners we all go down.
June 20th, 2008 at 1:23 pm
when will this anti bill come into affect. we need help we are 6 months behind and about to be auctioned soon.