Bush touts plan to calm mortgage crisis
Today, President Bush announced a private sector plan to address the mortgage crisis by freezing the subprime mortgage rates of some borrowers. In a speech today outlining the centerpiece of his plan, President Bush said, “We’ve launched a new initiative at the Federal Housing Administration called FHA Secure. This program gives the FHA greater flexibility to offset refinancing to homeowners — to offer refinancing to homeowners who have good credit histories but cannot afford their current payments.”
The focus on helping homeowners with good credit will exclude many of the people who have bad credit and should not have been offered mortgages to begin with. It’s funny how assistance to rich people is deemed essential to growing the economy but government assistance to low-income people is depicted as crippling the economy.
Among the critics of the plan, Michigan Senator Debbie Stabenow released a press release that said in part, “The President’s announcement today is a good first step, but I believe more action is needed to assist families in danger of losing their homes…we must immediately do everything we can to help families faced with losing their home. I will continue to lead efforts to pass my measure that will relieve families of a tax burden when their lender forgives a part of their mortgage. No one who is faced with losing their home should be faced with an additional tax bill.”
If you are feeling the pain of this mortgage crisis, call this number 24 hrs a day, 1-800-995-4673.
Stay up fam,