The controversial election year housing bill has passed the Senate today, creating a possible showdown with the White House over passage of the bill. It is no surprise that I am not in favor of it as it will slowdown any much needed correction for the marketplace.
Instead, after the politicians are done handing out their pork and repaying “favors” and covering the cost of the bureaucracy, there will be very little left over for the common Joe who could use the help.
But who could ask any more of our elected officials.
Senators voted 84-12 to pass the legislation drafted by Banking Committee Chairman Sen. Christopher Dodd (D-CT) and Rep. Richard Shelby (R-AL), the committee’s highest-ranking Republican. The measure sets aside $10.9 in bonds to refinance sub-prime mortgages, $180 million to counsel homeowners with bad loans, tax incentives for businesses and buyers of foreclosed homes. The controversial provision to buy up foreclosures was also included despite the White House previously saying it “constitute[s] a bailout for lenders and speculators.’ via AHN.
No related posts.
{ 1 comment… read it below or add one }
If the lenders/investors would work harder at negotiating workouts, there are many people who can keep paying. Their manuals only allow so many options before the person speaking for the servicer gives up. As with all market "corrections" there are working people who over-leveraged late. Many of those people would like to work out some plan to stay in the house while making payments they can afford. Not all the people who are upside down are deadbeats that want to send the keys to the bank.
{ 1 trackback }