X

Senate Votes to Aid At-Risk Homeowners

Bill, approved 93-1, would allow feds to back refinanced loans
By Zach Samalin,  Newser Staff
Posted Dec 14, 2007 4:44 PM CST
Senate Votes to Aid At-Risk Homeowners
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; 46.5 mm x 79.4 mm   (Associated Press)

(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.

story continues below

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. (Read more Senate stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X