Nearing the Resolution of Our Mortgage Problems?
I’m glad to be reading articles about the government stepping in to fix up the mortgage industry; sub-prime, last year, really left the nation in bad shape with foreclosures. If homeowners can refinance without the surprises of sky high rates, or with assistance from the Man to be able to get by, our nation’s problem will calm itself down.
The new Housing and Urban Development (HUD) Secretary is optimistic that lawmakers and the Bush administration could agree on a package to prop up the faltering mortgage market, the Wall Street Journal said on Thursday, citing an interview.
Steve Preston said that “something can be worked out,” the Journal reported. Preston was confirmed by the Senate as the U.S. housing chief in early June.
The current administration has threatened to veto legislation to tackle housing problems, the Journal said. While legislation is pending in the Senate, a separate bill was passed by the House in May, according to the report.
Both bills will allow scores of qualified home owners to refinance into affordable, government-insured mortgages, overhaul supervision of Fannie Mae and Freddie Mac and allow HUD to run its mortgage insurance division more flexibly, the report said.
But the current administration has concerns about some of the new spending, like the $4 billion in grants for localities to buy foreclosed property, despite its praises for provisions to boost supervision of Fannie and Freddie, the Journal said.
One clause in the Senate bill that concerns the White House, Preston said, is the chance that it could prevent HUD from charging different premiums to homeowners depending on the amount of risk they pose to its insurance program.
The Journal quoted White House spokeswoman Dana Perino as saying that the White House was “nearer to having something we could work on.”
A HUD spokesman confirmed the interview, and White House officials were not immediately available for comment.
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