From Realtor Magazine Online, Daily Real Estate News May 2, 2008
The U.S. House Financial Services Committee on Thursday passed a bill that paves the way for the Federal Housing Administration to refinance $300 billion in troubled mortgages.
Lenders would have to erase a portion of the original loan in order to secure a government guarantee on future payments.
The plan would "put liquidity back in the market and not interfere with the market, I think, but help restore (it)," Committee Chairman Barney Frank says.
Democrats, who hold the majority in the House, are expected to pass the measure once it is presented for a vote next week. A Senate panel is to begin drafting a companion measure on Tuesday. The bill will probably have a harder time in the Republican-dominated Senate.
Source: Reuters News, Patrick Rucker (05/02/2008)
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