Housing Woes Put Bush, Hill At Odds
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bankruptcy laws, housing market February 27th, 2008White House Opposes Use of Tax Dollars
Congressional leaders yesterday gathered support for aggressive changes to bankruptcy laws that would help troubled homeowners, even as the Bush administration threatened to veto the plan and emphasized its opposition to any program that would risk tax dollars.
Democrats are calling for the government to do more than what the administration has done to date. They propose a range of initiatives that include the purchase of troubled mortgage securities by a federal agency and the empowering of bankruptcy judges to change the terms of high-interest loans held by homeowners facing foreclosure.
But the administration said that changing mortgage terms retroactively for a select group of troubled borrowers would only add to lenders’ woes and lead to higher mortgage rates for everyone.
Tags: bankruptcy laws, housing market
