A Potential Veto For A New Housing Relief Bill

[Jun 16, 2008.]

 

As foreclosures continue to rise and more and more homeowners are finding themselves unable to pay the bills and needing to refinance, several lawmakers are working towards a bill that will provide much needed relief. The only problem is that the President promises to veto any bill that does not reflect cooperation between democrats and republicans.

A current bill that is going through the House is supported by Representative Barney Frank a democrat from Massachusetts promises to provide aid to those that need to refinance. Frank, who is also the head of the Financial Services Committee, anticipates a veto of his bill. Representative Frank has said that a veto would show that the President has "...stopped trying to govern".

The bill would provide assistance to borrowers who are currently facing foreclosure or who are at risk of foreclosure. One of the major points of this new housing relief bill as proposed by Representative Frank is that the Federal Housing Administration or FHA will insure the loan as well as refinancing them to a fixed rate 30 year loan instead of an adjustable rate loan. Often times those home owners facing troubled times have a high interest adjustable rate loan which is affected by certain factors like the national interest rates. A fixed rate loan locks in the interest rate that is to be paid on the mortgage at the current interest rate and only changes after a period of time predetermined by the lender and borrower. The 30 year loan that the proposed bill calls for will be overall, more affordable for troubled borrowers.

By the sounds of it President Bush supports the Republican housing relief plan which is far more modest claiming that the republican plan will ".do the right thing for the American people."

Bush has promised to veto the bill if it passes his desk. While many home owners are anxiously waiting some kind of relief plan it may take longer then expected.