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HUD Secretary Bernardi Calls for Compromise on Foreclosure Bill
By jason | May 13, 2008
In a new update on the highly controversial anti-foreclosure bill that was passed by the House of Representatives, which would award states 15$ billion to care for and rehab foreclosed homes, HUD secretary Roy Bernardi announced that a compromise could be made, breaking line from the White House’s stance that they would veto the bill if it came across the President’s desk. The bill would also require the FHA to insure over $300 billion in refinanced mortgages, once lenders agreed to reduce the principal owed on the original loans.
Bernardi seemed to be trying to appeal for a compromise between the republicans and democrats on the issue, as democrats want to do more to bail out homeowners and republicans are wary of awarding money in a way that they feel “benefits” irresponsible investors who lost money due to rising foreclosure and falling property values. This could be a valuable endorsement, as previous attempts by the house and senate to pass effective foreclosure bills have been watered down by the republicans, causing many to point to the bills as lame ducks.
The Bill moves forward to the Senate this week, where many expect it will again be passed.
Topics: HUD Homes |