A few days ago, I posted a piece on Bank CEO's and the huge profits they reaped (individually) from short term gains on subprime loans - Today, Mortgage Daily News describes the bailout as follows:
"The latest bill would allow lenders to reduce their exposure to foreclosures if they agree to cut the outstanding balance of an existing loan, thus allowing homeowners to refinance into a new loan that would be FHA insured. The reductions taken by lenders are substantial and must be based on new appraisals that should reflect current home pricing levels."
"The Bush Administration has opposed the legislation even though Frank included two measures near and dear to the president's heart - a revamp of the FHA and greater government control over Fannie Mae and Freddie Mac."
The bill was introduced by U.S. Congressman Barney Franks, D-Mass.
What do you think - is Congress taking a necessary step to protect the American Dream of home ownership? Or, is this just one more example of Corporate Welfare?
Full Story and Videos:http://www.mortgagenewsdaily.com/592008_Foreclosure_Assistance.asp
Mortgage Daily News - May 9, 2008