Skip to: Content
Skip to: Site Navigation
Skip to: Search

July 25, 2008 11:58:17 AM CDT

Learn about Newser Points »

« Back to the grid | Next story »

State Lenders Choke Bush's Fight Against Foreclosures

Posted Feb 1, 08 7:18 PM CST in Business,  US 

(Newser) – President Bush’s goal of helping subprime borrowers by offering tax-exempt bonds is meeting resistance from state lenders, Bloomberg reports. Risk-averse state housing agencies are already turning down over half the applicants to their own programs intended to help those affected by the crisis, due mainly to applicants’ existing financial woes. The agencies’ caution could cripple Bush’s scheme to fight foreclosures.

States’ ambitious programs have yielded weak results: New York has made only three of the 500 loans it originally estimated, and Massachusetts has made four with an allotted $250 million. “Often the borrower just has too much debt and the home does not have the value to support the refinancing,” said one official at mortgage-insurance giant MGIC.

Source Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Lenders Turning Blind Eye to Overdue Payments

    Apr 4, 08 4:24 PM CDT
    Lenders Turning Blind Eye to Overdue Payments With foreclosures skyrocketing, overwhelmed mortgage lenders are turning a blind eye to homeowners who haven’t paid up, letting them live in their houses despite delinquency, Bloomberg reports. The 3.6% of borrowers at least 90 days behind is almost twice the percentage foreclosed upon. Lenders’ delays are skewing foreclosure records and means even more homes could soon clog a flooded market. More »

An employee of Countrywide, the biggest US mortgage lender, walks into the Northridge branch in Los Angeles, Calif., in this Aug. 22, 2007 file photo. (AP Photo/Kevork Djansezian, file)   (Associated Press)
A home in foreclosure is seen in Pasadena, Calif., Tuesday, Jan. 15, 2008. The median home price in a six-county region of Southern California plunged more than 13 percent in December from the same month...   (Associated Press)
A foreclosure sign tops a sale sign outside an existing home on the market in northwest Denver in this Aug. 29, 2007 file photo. (AP Photo/David Zalubowski, file)   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 2)

Tags

George W. Bush  • housing market  • housing crisis  • subprime crisis  • mortgage crisis  • borrowers  • mortgage debt  • housing agencies


Loading...

Loading...

Today's Most Popular


Other US Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »