Nytimes_logo_1.gif (1794 bytes) @wehaitians.com  arrow.gif (824 bytes) No one writes to the tyrants  arrow.gif (824 bytes) HistoryHeads/Not Just Fade Away

News & Analysis This Month ... Only our journal brings you hours of fine reporting and research.
Correspond with us, including our executive editor, professor Yves A. Isidor, via electronic mail:
letters@wehaitians.com; by way of a telephone: 617-852-7672.
Want to send this page or a link to a friend? Click on mail at the top of this window.

news_ana_1_logo.gif (12092 bytes)

journal.gif (11201 bytes)
Organization for Economic Co-operation and Development (O.E.C.D.)

bluebullet.gif (326 bytes)Must learnedly read, too; in part, of intellectual rigor

bluebullet.gif (326 bytes)Our fund raising drive

arrow_plus.gif (74 bytes)When blame is again unjustly assigned to Haitians for the pandemic, AIDS

Posted Friday, January 25, 2008
U.S. may purchase large numbers of distressed home loans
By Reuters

WASHINGTON (Reuters) - The chairman of the Senate Banking Committee is working on a plan to set up a company to buy distressed home loans at currently discounted values and help fund new mortgages.

In a letter to Senate Majority Leader Harry Reid released on Wednesday, Sen. Christopher Dodd said he envisioned an entity with an initial capitalization of $10 billion to $20 billion that would buy distressed mortgages and pass on the "discounts ... to homeowners in the form of new, lower-balance mortgages."

Those new mortgages would either be insured by the Federal Housing Administration or backed by Fannie Mae and Freddie Mac, he said, two government-sponsored enterprises which buy mortgages.

"The difference between the old mortgage and the new mortgage would be sufficient, after initial capitalization, to fund the program and cover possible losses," the Connecticut Democrat said in the letter. "The new mortgages would be new 30-year fixed-rate mortgages, ensuring long-term stability for homeowners and housing market," he added.

Dodd's proposal is aimed at helping millions of Americans facing the risk of foreclosure.

(Reporting by Patrick Rucker; editing by Gary Crosse)

Copyright 2008 Reuters Ltd.

Wehaitians.com, the scholarly journal of democracy and human rights
More from wehaitians.com
Main / Columns / Books And Arts / Miscellaneous