Key lawmakers seek wider FHA role in mortgages
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FHA, mortgages March 14th, 2008WASHINGTON (Reuters) - Two top lawmakers proposed on Tuesday giving the Federal Housing Administration (FHA) a bigger role in tackling the nation’s worsening home mortgage and foreclosure crisis.
Under legislation unveiled by the lawmakers, the FHA would be permitted to offer $300 billion more in new guarantees to help refinance distressed mortgages that banks and mortgage holders have agreed to significantly write down.
House of Representatives Financial Services Committee Chairman Barney Frank said the proposal, which he warned could change, would help refinance up to two million home loans.
It would also provide $10 billion in loans and grants to states to buy and fix distressed properties, said Frank, a Massachusetts Democrat.
“There is no bailout for those who made the loans. … The lenders are going to have to take their losses,” he told reporters at a briefing. “This will be some help to homeowners, but not with tax dollars.”
