HELPING WITH THE MORTGAGE SLUMP ACROSS AMERICA!

WILL THIS GIVE HOME SALES THE BOOST NEEDED?

The Bush administration announced a new mortgage industry coalition on Wednesday aimed at helping homeowners avoid being trapped in a rising tide of foreclosures.
Treasury Secretary Henry Paulson said the initiative would boost financial companies’ efforts to help an estimated 2 million homeowners whose introductory mortgages with low rates are
resetting at much higher rates, just as the housing industry suffers through its steepest downturn in 16 years. The House pursued its own plan for helping homeowners, passing a bill to create a federal trust fund to finance construction and rehabilitation of affordable housing. The measure would provide between $800 million to $1 billion a year with the goal of creating 1.5 million affordable housing units over the next decade by funding grants to a variety of housing providers. The trust fund would be financed mostly from profits Fannie Mae and Freddie Mac, the chief U.S. buyers and guarantors of mortgages.