Washington Sees Several Fronts For Attacking Mortgage Crisis
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mortgage crisis, rate cuts March 24th, 2008WASHINGTON — After a week of government interventions into the housing and financial markets, Washington is gearing up for a wide-ranging government response to the problem. Here are some possible areas for action:
HOUSING: Democrats, in and out of Congress, are pushing measures to help struggling homeowners. One central idea would have lenders or investors take a loss by forgiving some of the remaining principal on home loans, after which the federal government would back new mortgages that would be less costly for homeowners.
House Financial Services Chairman Barney Frank, a Massachusetts Democrat, has a version that would insure up to $300 billion in refinanced mortgages, even for some delinquent borrowers. Sen. Christopher Dodd (D., Conn.) is promoting a similar measure in the Senate, which would provide government insurance for up to $400 billion in refinanced loans.
Tags: mortgage crisis, rate cuts
