In April, Barney Frank introduced a bill to help homeowners.

[Eric J in MN]

It would be a better way of dealing with the mortgage problem.

The bill was "H.R.5830,
FHA Housing Stabilization and Homeownership Retention Act of 2008."

(Frank) calls for the Federal Housing Administration (FHA) to insure $300 billion in new mortgages for distressed borrowers, even if they are badly behind on their payments and have poor credit -- including those who owe more than their homes are worth.

The bill would substantially relax the standards of the Depression-era FHA in an effort to reach the hardest-hit homeowners, leaving the government responsible for paying off their loans if they cannot.

Frank has described the plan -- regarded by some Republicans as a bailout for reckless borrowers -- as a measured response to the housing crisis that is necessary to head off further economic problems.

The bill was never voted on by the full US House.

But it had 43 co-sponsors.

Congress should drop the approach of giving big corporations cash-for-trash and examine this approach of helping homeowners INSTEAD.

More links:
Bill text

Realty Times article

[sandnsea]

1. FHA Housing legislation passed in July

It improves legislation passed last year, and goes into effect tomorrow. Google it.

[Eric J in MN]

3. It seems a lot less generous to homeowners than what....

...Barney Frank proposed in April.



“Federal Housing Finance Regulatory Reform Act of 2008"

"No investor or lender bailout. Investors and/or lenders will have to take significant losses in order to benefit from the proceeds of the loans refinanced with government insurance. However, these losses would be less than the losses associated with foreclosure."

[sandnsea]

4. We have a neocon Republican President

and a brain dead country that can't pay attention to anything for more than 5 seconds.

[Eric J in MN]

5. What do you think of Congress waiting until there is a President Obama...

...to pass any more major legislation?

[sandnsea]

6. I think we don't have time

This credit crunch is crunching today.

[AndyTiedye]

2. If the Government Insured the Mortgages, they Wouldn't be 'Bad' Anymore

and the current meltdown would not have occurred.

[Eric J in MN]

7. I wish Barney Frank had told Henry Paulson,

"I have more foresight than you do, and we're solving the mortgage problem my way."

Instead, Barney Frank voted for the cash-for-trash bailout bill yesterday.