From Realtor Magazine Online, Daily Real Estate News March 24, 2008
The federal government is on the verge of announcing a series of responses to problems in the housing and financial markets.
Here are key areas for action:Have lenders or investors take a loss by forgiving some of the remaining principal in troubled home loans, after which the federal government would back new mortgages that are less costly for homeowners.
House Financial Service Chair Barney Frank (D-Mass.) would insure up to $300 billion in refinanced mortgages, even for people who are currently delinquent. Sen. Christopher Dodd (D-Conn.) is promoting a similar bill in the Senate.
The Senate is expected to take up a broad housing bill that has already passed the House that includes tax relief for home builders and increased funding for mortgage counseling.
Regulators are expected to allow the 12 regional Federal Home Loan banks to buy an additional $160 billion in mortgage-backed securities, which is expected to help revive the mortgage security market.
Several proposals would give the Federal Reserve broader responsibility for regulating the financial market, while providing them access to the federal safety net and prevent such a crisis from happening again.
Source: The Wall Street Journal (03/24/2008)
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