Video: The Senate Votes on Bill Designed to Help Homeowners

    WASHINGTON, Dec. 14 /PRNewswire-USNewswire/ -- The Senate passed
 legislation today expanding the power of the Federal Housing Administration
 to help address the subprime mortgage issue. The bill would allow the FHA
 to lower the minimum amount necessary to get a loan and raise the limit on
 the mortgages the FHA can insure. But many experts are concerned that
 taxpayers are being put at risk.
 
 

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 http://www.prnewswire.com/mnr/forum/31127/
 
     "I don't think we should look towards the government sponsored
 enterprises as a solution to this problem. The private market is actually
 working very well. We see both lenders and buyers already correcting their
 behavior in this market. If you come in again with the government saying
 we're going to relax the standards for some of these loans, we'll
 implicitly subsidize these loans through our activity in the marketplace;
 when you do that, you encourage some of the speculation that got us to
 where we are in the first place," said Wayne Brough, Chief Economist,
 FreedomWorks. "So I would say we don't look to expand government programs,
 such as the government-sponsored enterprises, and let the market do what it
 does best, which is allocate these resources to where they should be."
 
     A recent poll by a grassroots organization shows a majority of those
 surveyed do not support lowering the down payment requirements.
 
 
 

SOURCE FreedomWorks