Proposals Get Nothing Done
Last week a third plan was announced by the White House as a solution for FHA reform. According to Forbes.com:
As outlined by FHA Commissioner Brian Montgomery this morning, the White House proposal encourages lenders to reduce the principal on loans, in exchange for FHA insurance for the renegotiated loan. Sound familiar? It should to those following Washington’s fight over how best to help troubled homeowners.
Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee has the same provision in his bill, as does Sen. Chris Dodd, D-Conn., who proposed the Senate version. And a federal program called FHASecure already provides a limited version of this service, allowing homeowners who became unable to pay their mortgages after adjustable rates became to high, to refinance into an FHA-secured loan.
What does get lost in this plan is Representative Frank’s proposed “Refinance Program Oversight Board”, instead of refinancing large amounts of homes at a time, taking them on a case-by-case basis. I’ve said it before and I’ve said it again, there are a lot of proposed solutions out there, but proposals aren’t getting anything done. I recommend these committees be locked up in the Capitol building until they hammer something out. Anybody with me?
