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Bush To Congress: FHA Reform Bill Faces Veto

by Peter G. Miller
June 23rd, 2008

The Bush Administration says it will veto bipartisan FHA loan reform legislation now pending on Capitol Hill. If successful, the veto would deny FHA mortgages to some 500,000 homeowners with toxic loans.

According to the White House, “the Administration has taken and continues to take aggressive actions to help families stay in their homes. Over the past year. the Administration has launched the FHA Secure initiative and facilitated the creation of the HOPE NOW Alliance to encourage the mortgage industry to assist troubled homeowners. The mortgage industry has helped nearly 1.6 million families stay in their homes since July 2007. The Administration’s FHA Secure program has helped nearly 250.000 borrowers refinance into safer Federal Housing Administration (FHA)-insured mortgages to help avoid foreclosure. In July FHA will start insuring even more mortgages under the recently announced FHA Secure expansion which encourages lenders to write-down some of the outstanding principal balances on mortgages for struggling borrowers. This modest additional risk will be fully offset by adjustments in FHA’s pricing. In total. FHA Secure is on track to help approximately 500,000 families refinance by the end of 2008.”

Where to begin?

According to HUD’s official reports, the FHASecure program refinanced 2,825 delinquent conventional borrowers between October 1, 2007 and the end of May. That’s a far cry from 250,000.

As to those 1.6 million “families” saved from foreclosure since last June, that’s the figure used by HOPE NOW. The problem, of course, is that HOPE NOW was started last October….

As the Comptroller of the Currency just reported, lenders were “counting any contact with a borrower about payment reduction or relief as a mitigation in process.”

“Virtually none of the data,” says the OCC, “had been subjected to a rigorous process to check for consistency and completeness –- they were typically responses to surveys that produced aggregate, unverified results from individual firms.”

The full White House statement can be found by pressing here.

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This entry was posted on Monday, June 23rd, 2008 at 1:24 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

2 Responses to “Bush To Congress: FHA Reform Bill Faces Veto”

  1. Tiffany Taylor Says:

    I just don’t see the logic in rewarding irresponsible people that bought more house than they could afford, or spend more than they make…

  2. JENNIFER Says:

    Typical.The Bush administration is only interested in helping big business.Not the American people.Hope now is laughable at best.We are headed for a huge crash.God help us.

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