Senate Banking Committee Reaches Agreement on Foreclosure Bill
Tuesday, May 20, 2008
The U.S. Senate Banking Committee announced Monday that the Committee's Republican and Democratic leaders have forged an agreement on how to compose a comprehensive piece of housing legislation that will add $300 million in government-insured loans without spending taxpayer dollars.
U.S. Sen. Chris Dodd (D-Conn.), who serves as the committee's chairman, and Republican leader U.S. Sen. Richard Shelby said last night that they will push forward with a version of the bill that's designed to create an FHA program that can refinance borrowers after loan holders reduce principal amounts. To allay concerns of a sweeping taxpayer-funded bailout, the program will be financed through an affordable housing fund supported by Fannie Mae and Freddie Mac.
“This legislation is good news for both the markets and homeowners,” said Dodd. “The bill addresses the root of our current economic problems – the foreclosure crisis – by creating a voluntary initiative at no estimated cost to taxpayers which will help Americans keep their homes. The bill also establishes a new fund that will help create more affordable housing for millions of Americans. Finally, this legislation takes a balanced approach toward reforming the GSEs, creating a world class regulator with enough authority to help these vital institutions operate in a safe and sound manner, while better fulfilling their important mission of providing affordable housing for Americans.”
The compromise was reached after Republican Committee leaders agreed to a plan that addressed their concerns about a taxpayer-funded bailout.
"I'm proud to join Chairman Dodd in announcing this agreement,” said Shelby. “My primary consideration during negotiations on this package has been to protect the American taxpayer, and I believe we've made significant progress toward that goal on each component.”
U.S. Sen. Chris Dodd (D-Conn.), who serves as the committee's chairman, and Republican leader U.S. Sen. Richard Shelby said last night that they will push forward with a version of the bill that's designed to create an FHA program that can refinance borrowers after loan holders reduce principal amounts. To allay concerns of a sweeping taxpayer-funded bailout, the program will be financed through an affordable housing fund supported by Fannie Mae and Freddie Mac.
“This legislation is good news for both the markets and homeowners,” said Dodd. “The bill addresses the root of our current economic problems – the foreclosure crisis – by creating a voluntary initiative at no estimated cost to taxpayers which will help Americans keep their homes. The bill also establishes a new fund that will help create more affordable housing for millions of Americans. Finally, this legislation takes a balanced approach toward reforming the GSEs, creating a world class regulator with enough authority to help these vital institutions operate in a safe and sound manner, while better fulfilling their important mission of providing affordable housing for Americans.”
The compromise was reached after Republican Committee leaders agreed to a plan that addressed their concerns about a taxpayer-funded bailout.
"I'm proud to join Chairman Dodd in announcing this agreement,” said Shelby. “My primary consideration during negotiations on this package has been to protect the American taxpayer, and I believe we've made significant progress toward that goal on each component.”
