Senate Passes Mortgage Bail Out Bill

CAPITOL HILL (AP) -- The Senate has passed a bill that could provide some relief to families facing steep increases in their mortgage payments.

The measure, approved by a 93-1 vote, would allow the Federal Housing Administration to back refinanced loans for homeowners facing foreclosure because of the ballooning interest rates on their subprime mortgages.

Up to 2.5 million adjustable-rate mortgages are scheduled to "reset" this year or next. The bill raises the maximum mortgage the FHA can insure up to $417,000, the same levels backed by Fannie Mae and Freddie Mac.

New York Democratic Senator Charles Schumer says the legislation clears the way for the FHA to "be a source of salvation for those families who were tricked into unaffordable loans."

A similar bill was passed in September by the House. The two chambers have to come to an agreement before sending the final bill to the White House for approval.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
23 WIFR 2523 North Meridian Road Rockford, IL. 61101 Business: 815-987-5300 Fax: 815-965-0981 News: 815-987-5330 Fax: 815-987-5333
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 12508556 - wifr.com/a?a=12508556
Gray Television, Inc.