Bailout could help stem foreclosures
Representative Barney Frank is drafting new legislation to help stem home foreclosures and reduce mortgage rates. The plan would use some bailout money and ideas from FDIC chair Sheila Bair. Nancy Marshall Genzer reports.
Foreclosure sign (iStockPhoto)
More on Housing - Real Estate, America's Financial Crisis
TEXT OF STORY
Scott Jagow: The government releases the latest data on home sales today. Still not expecting much good news. But there's a new push in Congress to help homeowners who are struggling. Marketplace's Nancy Marshall Genzer has more on that.
Nancy Marshall Genzer: House Financial Services Committee Chairman Barney Frank is drafting new legislation. It would require some of the remaining federal bailout money to be used to help stem home foreclosures and reduce mortgage rates.
The Massachusetts Democrat says his bill would include some ideas from FDIC chair Sheila Bair. She wants to spend $24 billion on incentives to encourage lenders to modify more loans to keep struggling borrowers in their homes.
Frank's legislation would also put policies in place at Fannie Mae and Freddie Mac that would lead to lower interest rates. He wants the second half of the $700 billion in bailout money to be released next month -- even before President-elect Barack Obama takes office.
In Washington, I'm Nancy Marshall Genzer for Marketplace.
Comments
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From New Windsor, NY, 01/04/2009
Love your articles very insightful. Your videos are more my speed since I am a visual/auditory learner. I am personally in the middle of a forclosure with the BofA who as your article stated aquired Countrywide which was the second bank to purchase my mortgage. BofA refuses to work with me in a refi. Every time I make contact with them either by phone or e-mail I always get a different person. What the hell is going on!!!!!!
From Richmond, CA, 12/23/2008
I often wonder whether bailouts for homeownwers have the unintended effect of artificially supporting the prices of houses and delaying the bottoming of the housing market.
From marion, KY, 12/23/2008
hoping i get bail out on my house hate lose it getting not enough hrs keep up payments it was in forcloser need help
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