[Homestead] 3 million individual mortgages to be guaranteed by taxpayers - new bail-out
bob ford
bobford79 at yahoo.com
Wed Oct 29 19:06:59 EDT 2008
If your neighbor didn't make his mortgage payment, worry not, hundred of billions of taxpayer money will make his mortgage good, along with another 3million non-payers. And, gee, won't the banks be happy
If the first bail-out didn't make people red-in-the-face, I'm interested tom see the response to this one... Be sure and thank your memeber of congress. They are pushing the treasury on this one, especially hard..bobford
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Government May Guarantee 3 Million Mortgages
By Peter Whoriskey, Zachary A. Goldfarb and Binyamin Appelbaum
Washington Post Staff Writer
Wednesday, October 29, 2008; 5:13 PM
Officials with the Treasury and the Federal Deposit Insurance Corp. are nearing agreement on a plan under which the government would guarantee the mortgages of millions of homeowners now struggling to avoid foreclosure.
According to three sources familiar with the discussions, the plan would cover up to three million homeowners. It would cost between $40 billion and $50 billion and cover as much as $600 billion in mortgage loans.
Under the program being discussed, the lender would agree to reduce borrowers' monthly payments based on their ability to pay. The reductions could be achieved by lowering the interest rate, slashing the amount owed or extending the repayment period.
These reconfigured loans would help homeowners avert foreclosure.
In exchange, financial institutions that agree to participate in the program would receive a government guarantee for a portion of any losses occurring if borrowers default on the reconfigured loan.
Treasury officials confirmed that discussions were underway for homeowner aid, but said any figures remain fluid, and that other options are under consideration as well.
"While we have had productive conversations with Treasury about the use of credit enhancements and loan guarantees it would premature to speculate about any final framework or parameters of a potential program," said Andrew Gray, an FDIC spokesman.
The mortgage guarantee program would vastly expand the role of the Treasury Department in helping homeowners, while at the same time ensuring some return for lenders.
The program is being discussed as members of Congress are voicing frustrations that the $700 billion rescue program thus far has been aimed at helping banks, but not homeowners.
While Treasury and FDIC officials have reached an agreement on the principles of the program, the White House is resisting, according to the sources, who declined to be identified because the negotiations are ongoing.
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/29/AR2008102902605.html?hpid=topnews
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