The Bush administration's proposed $700 billion financial rescue began to take shape today with lawmakers debating whether to add provisions to protect taxpayers, according to CNNMoney.com. Banks and other companies called for expanding its scope beyond mortgages. CNNMoney reports that Democrats want independent oversight, homeowner protections and limits on executive pay.
Jerry Howard, executive vice president and CEO of the National Association of Home Builders (NAHB), says "The National Association of Home Builders applauds the Bush Administration, Federal Reserve and Congress for moving quickly to stem the ongoing financial crisis. Policymakers realize the root causes-falling home prices, mounting foreclosures and a frozen credit market-must be addressed now.
John A. Courson, Chief Operating Officer of the Mortgage Bankers Association (MBA) agrees. "The broader steps outlined by Treasury are aimed at ending the further meltdown in the financial markets and are designed to minimize the resulting impact of the market turmoil on the broader economy. It's another step in the long-term process of restoring a balance between the supply and demand for housing in a number of markets and thus addressing the continuing problem of mortgage delinquencies and foreclosures.
However, The Center for Responsible Lending's President Mike Calhoun says that the bailout won't stop foreclosures that push down property values. "The government plan announced by Treasury Secretary Paulson and Fed Chairman Bernanke fails to deal with the root cause of the crisis- families in foreclosure-and instead is purely and simply a bailout of the lenders who created this disaster. The bailout will not solve our economic problems because it will do virtually nothing to stop the foreclosure epidemic.
No comments:
Post a Comment