Bush to Propose Subprime Mortgage Reforms

http://www.foxnews.com/story/0,2933,295369,00.html

Bush to Propose Subprime Mortgage Reforms

Friday, August 31, 2007

WASHINGTON - President Bush will propose reforms on Friday intended to

help homeowners with subprime mortgages avoid default, his first public step

to address a crisis that has created turmoil in financial markets around the

world.

"He will also discuss reform efforts to prevent these kinds of problems from

arising in the future," a senior administration official told Reuters on

condition of anonymity.

Many analysts warn that a spreading credit crisis could drag the U.S.

economy into recession but the Bush administration has repeatedly said that

U.S. economic fundamentals are healthy and that global growth is robust.

Financial markets in the United States and abroad have been volatile in

recent weeks as U.S. defaults have risen on so-called subprime mortgages to

less credit-worthy borrowers, and questions have arisen about whether loans

that have been bundled into securities sold overseas may also fail.

The Federal Reserve has taken steps to increase liquidity in markets and

faces calls for interest-rate cuts to head off a broader credit squeeze that

could drag economic growth down.

Bush, in a statement scheduled for 11:10 a.m. EDT in the White House Rose

Garden, will discuss the need for Congress to pass Federal Housing

Administration reform legislation aimed at giving the agency the flexibility

to help subprime mortgage borrowers, two administration officials told

Reuters.

One move will be an administrative change to allow the Federal Housing

Administration to guarantee loans for borrowers at least 90 days behind in

mortgage payments to help them avoid foreclosure, the Wall Street Journal

reported from a briefing given to a few newspapers.

The Federal Housing Administration was founded in the 1930s Depression years

after the U.S. banking system failed and millions of Americans were made

homeless. Now its mission is to foster home ownership by insuring mortgage

loans, especially for poorer Americans who face difficulty meeting terms for

conventional loans.

The risk of a credit squeeze stemming from rising defaults on subprime

mortgages has fueled worry that consumers will trim spending at a rate that

could tip the economy into recession.

Bush will urge the Democratic-led Congress to work with him in a bipartisan

way to reform the tax code to help troubled borrowers revise their loans,

administration officials said.

Bush will ask Congress to temporarily suspend a tax provision that has left

some troubled homeowners with large tax bills, the Wall Street Journal

reported.

Bush is also expected to direct Treasury Secretary Henry Paulson and Housing

Secretary Alphonso Jackson to work on an initiative to help troubled

mortgage holders obtain services and products needed to prevent default,

officials said.

He will discuss the need for rigorous enforcement of predatory lending laws

and strengthening lending practices, they said.

Stock prices fell on Thursday on concern that credit market upheaval was

spreading, with the Dow Jones industrial average (DJI) down 50.56 points to

close at 13,238.73.

The rising home-mortgage default rate has been seized upon by Democrats who

say the Bush administration failed to make sure that regulators enforced

rules that oblige lenders to make sure that borrowers could repay their

loans.

Hundreds of billions of dollars worth of the riskiest subprime loans carry

low initial rates that will adjust, or "reset" at higher rates, between now

and the end of 2008.

That is expected to push the default rate up and could create a potentially

devastating political issue for Republicans gearing up for the 2008

elections.

Federal Reserve Chairman Ben Bernanke, who has been criticized for being too

slow to take sterner measures to stamp out the smoldering credit crisis, is

scheduled to speak on Friday morning about housing and monetary policy

shortly before Bush's statement.

On Aug 31, 7:33 am, "Patriot Games" <Patr...@America.com> wrote:

> http://www.foxnews.com/story/0,2933,295369,00.html

>

> Bush to Propose Subprime Mortgage Reforms

> Friday, August 31, 2007

Now that the WHOLE FUCKING SYSTEM is on the brink of collapse,

NOW BUSH, the great DECIDER has "decided" to do something, eh?

Wow, that Bush is sharp as a tack.

Citizen Jimserac

"Citizen Jimserac" <Jimserac@gmail.com> wrote in message

news:1188563631.163174.267570@y42g2000hsy.googlegroups.com...

> On Aug 31, 7:33 am, "Patriot Games" <Patr...@America.com> wrote:

>> http://www.foxnews.com/story/0,2933,295369,00.html

>> Bush to Propose Subprime Mortgage Reforms

>> Friday, August 31, 2007

> Now that the WHOLE FUCKING SYSTEM is on the brink of collapse,

> NOW BUSH, the great DECIDER has "decided" to do something, eh?

> Wow, that Bush is sharp as a tack.

The whole system? The brink of collpase?

I bet you peed your panties didn't you?

On Aug 31, 1:27 pm, "Patriot Games" <Patr...@America.com> wrote:

> "Citizen Jimserac" <Jimse...@gmail.com> wrote in message

>

> news:1188563631.163174.267570@y42g2000hsy.googlegroups.com...

>

> > On Aug 31, 7:33 am, "Patriot Games" <Patr...@America.com> wrote:

> >>http://www.foxnews.com/story/0,2933,295369,00.html

> >> Bush to Propose Subprime Mortgage Reforms

> >> Friday, August 31, 2007

> > Now that the WHOLE FUCKING SYSTEM is on the brink of collapse,

> > NOW BUSH, the great DECIDER has "decided" to do something, eh?

> > Wow, that Bush is sharp as a tack.

>

> The whole system? The brink of collpase?

>

> I bet you peed your panties didn't you?

Just, whatever you do, keep an eye skyward

when you walk around in the financial district

of any major city, and be on the lookout

for mortgage broker jumpers.

And YES, I said the WHOLE SYSTEM.

Citizen Jimserac