An article titled 'Homeowner Rescue Awaits President Bush's Signature' written by Julie Davis, an Associated Press Writer, covers the mortgage bail out better than most articles I have read.
WASHINGTON (AP) -- Congress approved mortgage relief for 400,000 struggling homeowners Saturday as part of an election-year housing plan that also aims to calm jittery financial markets and bolster the sagging economy. President Bush said he would sign it promptly, despite reservations. Read the article here
I'm not familiar with Julie Davis or past articles by her but this one is really on target.
The foreclosure rescue program has some good stuff and some not so good stuff.
- It includes $3.9 billion in funds to lenders (that caused the problem!) to purchase and fix up foreclosures so neighborhoods would not be dragged down in value. With this funding, won't they be more likely to foreclose than to work with the homeowner?
- $180 million for pre-foreclosure counseling
- The Federal Reserve will oversee Fannie Mae and Freddie Mac
- $15 billion in tax cuts and tax credits for first time home buyers
- $800 increase to the limits set on national debt
There are other issues with the program, one of which is that the tax payers will be the ones paying for Fannie and Freddie bail out. This is just wrong in my opinion. I don't think they should be bail out at all or by any means.
Here is another quote from the article and I include it because it cannot be said better:
Conservative Republicans were vehemently opposed to the bill, particularly
the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy
lavish profits in good times and wield their outsized political clout to resist
regulation while depending on the government to bail them out should they
Sen. Jim DeMint, R-S.C., delayed the final vote because Democrats refused
to allow him a vote on a proposal to ban the companies from lobbying or making
political donations to lawmakers.
"We can't have the people who are supposed to watch over these
organizations getting money from these organizations," DeMint said. "At least if
we're going to ask the American taxpayer to be on the hook for billions,
possibly trillions of dollars, let's stop this."
You should really read entire the article. I have the Foreclosure Rescue Program in pdf format if you would like a copy of it. Just send an email to firstname.lastname@example.org and I'll send you the file.