Foreclosure Bill under White House Threat

The growing concern over the possible effects of high foreclosures rate on the entire housing market has prompted legislators to propose a foreclosure rescue bill. After many months of being scrutinized, the said bill will hopefully see the light of day very soon. That is, if the White House allows it.

For Republican opponents, they are worried that the bill will more likely benefit lenders such as Countrywide Financial Services and not the millions of troubled homeowners facing foreclosure.

The said housing bill is being recommended to undergo another review by the House Banking Committee in order to answer these particular concerns. Chairman Chris Dodd of D-Cnn has been under a lot of pressure from the Republicans due to rumors that the legislator is receiving special consideration by the mortgage giant Countrywide in exchange for the approval of the bill. Also under intense scrutiny is Kent Conrad of D-ND, who is the Budget Committee Chairman.

If the bill is approved, it would mean $300 billion worth of cheaper mortgages backed by the federal government. Approximately 500,000 homeowners are targeted by the foreclosure relief program. These homeowners will have to qualify for the refinancing program first.

In addition, the housing bill includes policies that will tighten guidelines of Fannie Mae and Freddie Mac as well as additional tax breaks for first time homebuyers.

But with all the arguments and debates between the supporters and opponents of the housing bill, millions of distraught homeowners will probably lose their homes to foreclosure especially those whose mortgages have re-set at the beginning of the year.

Without support from the White House, the approval of the housing bill will certainly take time. With the rising fuel and food prices, many Americans are worried that when help finally comes, it will be too late for them to stop foreclosure.

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• HUD Secretary Bernardi Calls for Compromise on Foreclosure Bill
• Banking Committee Chair Dodd Considers Bill to Help Homeowners Avoid Foreclosure