April 2, 2008
JustQuotes: A Shift In Policy Or Simply A Shift In What's Being Said?
"Treasury Secretary Henry Paulson indicated the Bush administration is willing to consider congressional plans to stem foreclosures by expanding government guarantees for mortgages."
"Paulson's housing comments are a shift from last month, when he said proposals to use government funds were a 'non- starter' and played down concern about homeowners whose houses are worth less than what they owe on their mortgages. House Financial Services Committee Chairman Barney Frank said yesterday that officials are warming to his plan to widen mortgage guarantees."
First Published: April 2, 2008 6:00 AM
Comments from "Plugged In" Readers
And meanwhile, Fannie announced tougher loan qualification standards that wiped out another 15-20% of the applicants who could have been approved a few days ago
[Editor's Note: Impacting those with low credit scores most: Fannie Tightens Mortgage Terms, Sets Minimum Score.]
Posted by: tipster at April 2, 2008 8:28 AM
Just wait till the bill just approved by the Senate, allowing homes to be protected in bankruptcy court, takes effect. How much more will loan standards be tightened? It'll be the law of unintended consequences in action.
Posted by: zzzzzzz at April 2, 2008 10:44 AM
What is surprising in all of this is how rapidly *any* government action to ease the situation is immediately countered by the private sector countering the move, and then some.
Bush says he'll give in, which will allow maybe 1% to get more time, and because of that, and the fear that even more draconian measures could be on the way, mortgage standards tighten to wipe out 15% of all new applicants.
That puts us further behind than when we started. So the politicians feel the need to implement even more draconian measures to "save" housing. But then when the more draconian measures are implemented, standards tighten even further.
Where does it end?
Posted by: tipster at April 2, 2008 11:20 AM