REALTOR® Magazine Daily Real Estate News May 20, 200
Democrats and Republicans in the Senate have ended weeks of negotiations with a plan that would allow the federal government to insure up to $300 billion in refinanced loans for struggling home owners.
The bipartisan accord, which represents the clearest sign yet that Congress is ready to pass sweeping legislation on housing, also seeks to tighten up oversight of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which provide funding for mortgages.
Republicans had been concerned that taxpayers would be responsible for what amounts to a bailout, but a provision calls for initial losses on defaulted loans to be covered by fees charged to the two GSEs. Even President Bush has recognized the Senate's efforts in recent days, easing off earlier veto threats.
Source: Wall Street Journal (05/20/08) Damian Paletta; James R. Hagerty
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