Mar 26
A Further Push for Real Estate in the Senate
In January, the Senate Banking Committee led by Senator Chris Dodd of Connecticut, proposed a plan in which the government would buy mortgage loans from lenders, create fixed-rate mortgages for homeowners and purchase foreclosed homes to either refurbish or demolish, in an attempt to revitalize the real estate industry. Although the group’s exact vision was not realized when the economic stimulus bill was signed in February, part of it was: President Bush raised the cap on mortgages for one year, giving the market a temporary reprieve.
Temporary, however, is not the goal of the Senate Banking Committee, permanent is. With December (the end of the cap) already on the horizon, Dodd and his fellow committee members are once again addressing the Senate. They want a long-term change, one that will allow for new loans and refinancing for years to come. They want the real estate industry to be revitalized for good.
Unfortunately, they face opposition. The Republicans are hesitant to allow for such permanent changes. If the mortgage limits are to be extended federal control, they say, must be strengthened. The government must rein in the companies in order to maintain a balanced and working system.
Time is running short, as only a few months remain with the current cap. How the Senate will proceed remains to be seen. It is hoped that Dodd and the Senate Banking Committee will be able to concoct a plan that both aids the homeowner and the lender, as well as satisfies the opposition.
