US legislators pass major bill tackling housing crisisMay 9th, 2008 - 7:34 am ICT by admin
Washington, May 9 (DPA) The US House of Representatives Thursday approved a costly bill tackling the housing crisis that is largely blamed for an economic slowdown in the US, setting up a confrontation with the White House. The legislation, pushed through by Democrats with some Republican support, allows the government to guarantee $300 billion in loans to help struggling homeowners in danger of foreclosure.
US President George W. Bush Wednesday threatened to veto the costly bill, which he derided for rewarding “speculators and lenders” rather than individuals struggling to stay in their homes.
Government agencies have worked to help homeowners refinance their mortgages, but the Bush administration has opposed using taxpayer money to bail out homeowners or speculators who took excessive risks or took out mortgages they could not afford.
Opponents of the new bill say the burden will be placed on taxpayers, should people taking the federal loans end up defaulting on their mortgages.
The centre-left Democrats argued that halting a rash of foreclosures since August was critical to get the wider economy back on track. Party leaders in the Senate were thrashing out the details of a similar bill.
“Foreclosures have caused and are causing serious economic problems,” said Barney Frank, who wrote much of the bill and chairs the House Financial Services Committee.
A dramatic drop in home prices in the last two years prompted a record number of foreclosures since August. Investment banks and lenders have been hit with huge losses from the mortgage defaults, contributing to a wider economic downturn in the United States.
- Bush threatens veto as Congress takes up housing bill - May 08, 2008
- Californians warned to beware of forensic loan audit scams - Feb 23, 2010
- Obama's plan to help 3.5 mn homeowners (Lead) - Feb 02, 2012
- Freddie Mac Urges Homeowners To Refrain From Strategic Default - May 10, 2010
- Strategic Default Outdoes HAMP Adjustments - May 10, 2010
- Fannie Mae rental program - Nov 06, 2009
- More Than 40 Percent Drops Obama Mortgage-Aid Program - Jul 21, 2010
- Behind the Numbers:Banks Repossess 1Million US Homes in 2010 - Jan 13, 2011
- Delaware Attorney General Biden calls on BoA, JP Morgan Chase and Ally Financial to halt foreclosures - Oct 06, 2010
- Fannie Mae, Freddie Mac prevented two mn foreclosures: Report - Dec 07, 2011
- Obama signs laws to help homeowners, prevent fraud - May 21, 2009
- Obama launches plan to help families facing foreclosure - Oct 26, 2011
- Spanish government prods banks to modify mortgages - Mar 11, 2012
- US sues financial firms over mortgage losses - Sep 03, 2011
- US seeks to suspend executives' bonuses at mortgage giants - Nov 16, 2011
Tags: barney frank, bush administration, confrontation, dramatic drop, economic downturn, economic problems, economic slowdown, excessive risks, federal loans, financial services committee, george w bush, house financial services committee, investment banks, party leaders, president george w bush, republican support, speculators, taxpayer money, us house of representatives, us president george