Senate approves 100 mln usd fund to help borrowers pay mortgages |
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Wed, 12 Sep 2007 20:06
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WASHINGTON (Thomson Financial) - The Senate today approved legislation that would instruct the Secretary of Housing and Urban Development to offer grants to entities that help struggling borrowers keep up their mortgage payments.The language sets up a 100 mln usd fund for troubled borrowers, which Senate Banking Committee Chairman Christopher Dodd said would help beat back the increasing number of foreclosures.'Homeowners are being battered by the rising tide of foreclosures,' Dodd said today. 'This measure can act as a lifeline to help keep them in their homes.'The provision would allow grants for both convention and subprime loans, and could be used toward refinancing or counselling on other ways borrowers can keep current on mortgage payments. The language was included in the Department of Transportation, Housing and Urban Development Act, which the Senate passed 88-7.Dodd has previously said he wants to set up this fund, along with other steps such as expanding the ability of Fannie Mae and Freddie Mac to buy and hold more mortgages.pete.kasperowicz@thomson.compik/wash/gpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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EMB US bank regulators want mortgage servicers to help homeowners in trouble 