Wednesday, September 19, 2007
The Bendover Congress
House approves bill helping mortgage borrowers
By Robert Schroeder, MarketWatch
Last Update: 4:24 PM ET Sep 18, 2007
WASHINGTON (MarketWatch) -- Reaching out to hard-hit borrowers in the subprime-mortgage market, the House on Tuesday passed a bill that lowers down payments for borrowers, raises loan limits and boosts funds for housing counseling.
Passed by a vote of 348 to 72, the bill reforms the Federal Housing Administration and is the latest lifeline thrown to borrowers from Washington as the fallout in the mortgage market continues.
About two million loans are expected to reset to higher rates in the next two years, with defaults expected to follow. Congress and the White House have floated various proposals to stem the damage.
The bill directs up to $300 million a year into an affordable housing fund.
Hat Tip to Sweet Cashback who posted in the previous thread while i was preparing this post.