Helping the Housing Market, without the Risk

This past Tuesday, the Senate Banking Committee approved legislation to aid homeowners who need to refinance expensive loans. According to a New York Times article, this will be done without placing taxpayers at risk or increased financial strain. Over the years, the government has required Fannie Mae and Freddie Mac to designate hundreds of millions of dollars annually that could then be used to refinance loans in hard times such as these. The plan that was recently passed will allow the FHA to insure risky loans, thereby keeping hundreds of thousands of homeowners from declaring foreclosure, and thus stabilizing the market.

For more on this story, please visit:
http://www.nytimes.com/2008/05/21/business/21fannie.html?_r=1&th=&oref=slogin&emc=th&pagewanted=print