Little foreclosure relief seen from housing bill
After a year of debate, Congress appears close to passing a bill intended to stem the rising tide of home foreclosures and stabilize the shaky housing market.
But even if the bill wins final passage — far from a certainty — the most optimistic forecasts suggest it would help only about 400,000 of the estimated 3 million homeowners who will likely lose their homes in the next year.
Prospects for the bill have been complicated by the mortgage meltdown’s latest chapter — the severe turmoil surrounding Fannie Mae and Freddie Mac, the government-sponsored companies that provide much of the capital to the mortgage market. A Bush administration plan to help prop up the two faltering enterprises has been tacked on to the housing bill, generating some backlash from congressional Republicans.
One would hope so.
I feel sorry for the people who are losing their homes, but I don’t see why the taxpayer should bail them out. Many of the “victims” are flippers who intended the houses they bought and got stuck. Others took on loans they knew they couldn’t afford but depended on the marked to keep rising so they’d be able to refinance.
I would like to see a lot of the bankers prosecuted, especially the ones who gave out loans w/o verifying income or assets – something the now failed Indymac Bank specialised in.
And the gov’t especially should not add another couple trillion to the national debt just to save the stockholders of Freddie Mac & Fannie Mae.