Homeowner Rescue Bill To Become Law
Congress approved the rescue bill on Saturday. It is hoped this plan will calm jittery financial markets and bolster the sagging economy.
The measure, called highly significant housing legislation, by many, purports to let those who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes. The bill has many skeptics who believe that speculators and others who acted irresponsibly will now get a bailout from already hard-pressed taxpayers who are seeing more and more of their earnings redistributed to others. The measure also offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac.Those two companies have been involved in highly questionable transactions with many Clinton administration officials right in the middle of it all. You can bet your life the Mainstream Media will not touch this anywhere near the way it did the Enron scandal because the Media thought they would have something on Republicans which they didn't, but they were non-stop with the power of suggestion. It appeared as though a showdown between the White House and the Democratic-led Congress was ready to ensue. Opposing sides differed over how far the government should go in rescuing homeowners. Eventually the matter turned into a bipartisan effort. In Saturday's session, the Senate voted 72-13 to send the bill to the president; the House passed it Wednesday. Bush had changed his mind earlier in the week on his veto threat , over $3.9 billion in neighborhood grants. The president felt the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers. Tony Fratto, deputy White House press secretary, said "Because of the Democratic Congress' delays and the need for action now, President Bush will sign this bill when he receives it, despite our concerns with some provisions, including nearly $4 billion to help lenders, not the homeowners this legislation is intended to serve." Several Republicans welcomed the bill. Treasury Secretary Henry M. Paulson's request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. The measure also included the creation of a regulator with stronger reins on the government-sponsored companies. Republicans have sought regulation over these two giants for a long. Democrats were most satisfied with the aid for homeowners, a permanent affordable housing fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants. "This is far more than sending a bill to the president's desk for his signature. It's sending a message to the American people that the Congress of the United States — despite an alternative reputation — can actually get things done, and can work together to achieve a good result," said Sen. Christopher J. Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee. President Bush is not expected to hold a White House signing ceremony, because of his deceded unhappiness with it. Many Senate GOP leaders were likewise not pleased. In the House, over 75% of Republicans voted against the bill. The FHA can now insure $300 billion in mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.T Another feature of the bill would permanently increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. Those two agencies could also buy and give backing to mortgages 15 percent higher than the median home price in certain areas. The measure allegedly tries to prevent blight. It provides $3.9 billion to blighted neighborhoods to buy and fix up foreclosed properties.
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