Bush Plans Loan Relief on Housing

[Moseley]

He will call for the Federal Housing Administration to raise the ceilings on what it can charge for federal mortgage insurance, a move that would let an additional 80k homeowners with spotty credit records sign up, beyond the 160k likely to use it this year and next.

Will endorse proposals backed by Democrats that would raise the ceiling on the amount of a mortgage that can be refinanced with federal insurance.

Will support legislation that would provide tax breaks to homeowners whose mortgage debt is forgiven, in whor or in part, by lenders. The federal govt. currently collects taxes on the amount of a loan that is forgiven.

There are 2 million mortgages, all held by homeowners with credit problems and homes that are declining in value, are valued at 500-600 billion.

The total value of American mortgages is about 10 trillion. So 500 billion is 1/2 of 1%.

Now, is the government concerned about the .5% of the mortages held by homeowners that made a big mistake, or the huge mortgage industries that hold the mortgages and the resulting economic strife in afflicted areas?

Isn't the subprime market owned by a small number of corporations? Won't they be hurt more than anyone else?

The homeowner can simply fail to make the payment for 3 months, before being evicted, save the payment for the down payment on renting an apt/house.

Are the Bush and Democrats main concern really about helping a small percentage of struggling home borrowers?