Other Newspapers' Opinions: Mortgage tightrope
Friday, September 7, 2007 10:55 AM PDT
With Congress back from recess, Washington is resuming discussion of the sub-prime mortgage mess and how government might help the millions of American homeowners facing foreclosure.
So far, policymakers have advocated restraint. In a speech last week, President Bush called on lenders to help qualified borrowers restructure their mortgages.
He also suggested letting the Federal Housing Administration insure refinanced loans for borrowers with good credit and waiving taxes on forgiven debt when loans are restructured. The Federal Reserve Bank and other banking agencies have advocated guidelines to combat predatory lending and this week backed the president's call to lenders.
The most aggressive rhetoric has come from congressional Democrats, who support all of the above and more.
But does Bush’s FHA proposal, which would help just 80,000 homeowners, constitute a bailout? Does funding mortgage counseling, which, far from keeping undeserving borrowers in overpriced homes, often advises them to sell, allowing local real estate prices to readjust in a rational way? Although it’s not the government’s job to prop up markets, letting neighborhoods and the economy spiral into foreclosure chaos isn’t thoughtful public policy either.
—Los Angeles Times
Alma wrote on Aug 28, 2009 8:22 PM:
Im so very proud of you, you did AMAZING!! Yet still very young and have years to improve, which seems scary. I know grandpa was cheering for you, chanting #1, #1... Keep up the great work kido. "