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December 2, 2008 11:20:23 AM CST

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Senate Votes to Aid At-Risk Homeowners

Posted Dec 14, 07 4:44 PM CST in US 

(Newser) – In an attempt to quell the ongoing housing crisis, the Senate approved a bill today that would allow the Federal Housing Administration to back refinanced loans for the thousands in danger of defaulting on mortgages. The bill, which passed 93-1, also repositions the FHA as an attractive alternative to subprime lenders by lowering minimum down payments and offering homeowner counseling.

The bill would give homeowners "the option of refinancing to an FHA-backed loan with the peace of mind that comes with it," said Sen. Harry Reid, while also raising the maximum mortgage the FHA can insure, the Associated Press reports. The agency should "be a source of salvation for those families … tricked into unaffordable loans," said Sen. Charles Schumer.

Source Associated Press

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Chart shows percentage of foreclosures starts for subprime, FHA, VA, prime and all loans, percentage of seriously delinquent loans and subprime adjustable-rate mortgage forclosure starts; 1c x 3 1/8 inches;...   (Associated Press)
Speaker of the House Nancy Pelosi, D-Calif., right, and Rep. Carolyn Maloney, D-N.Y., left, look on during a press conference to announce a joint plan by House and Senate Democrats to curb rising home...   (Associated Press)
Senate Majority leader Harry Reid, D-Nev., right, looks on as Speaker of the House Nancy Pelosi, D-Calif, left, gestures during a press conference to announce a joint plan by House and Senate Democrats...   (Associated Press)
In this file photo, Sen. Chuck Schumer, D-N.Y., speaks to reporters about the subprime mortgage crisis and possible replacements for Attorney General Alberto Gonzales during a news conference at the Capitol...   (Associated Press)
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Senate • subprime mortgages • housing crisis • Harry Reid • Charles Schumer • Federal Housing Administration • refinanced mortgages


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