Two important things happened today, and at least one of them could provide vital assistance to homeowners fearing loss of their homes to foreclosure. The one that Could help homeowners is the one we've discussed here on a number of previous occasions--the Frank bill from the House of Representatives and its Senate mirror image. All along the Bush White House has threatened to veto the bill, saying it would be too costly and also could 'unfairly' cut into lender profits (as if all of the foreclosures weren't doing EXACTLY that already).
The Senate today beat back Republican attempts to gut the bill and passed it by veto-proof margins. Subject to a committee review of its effects vis-a-vis Countrywide, it may soon actually get to Bush's desk for his signature, and, if vetoed, back to both houses of Congress for the override vote.
The other item of interest, although too soon to see if it will be a basis for further assistance to homeowners and those who've already lost their homes, is a large mortgage fraud sting by the FBI. Citing various alleged violations of mortgage fraud laws, the Bureau obtained indictments or arrested hundreds of lenders from at least 19 separate lending institutions today. The makeup of the accused ranged from executives at the leading investment banking firm, Bear Sterns to employees of a number of other mortgage lenders and brokers. Is this too little-too late? Only time will tell. Stay tuned.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment