There was a pretty good article over on the National Journal site recently about the pending mortgage relief legislation and the effect it could have on US homeowners. Here is an excerpt:
The CBO estimates that a Senate bill allowing the Federal Housing Administration to insure up to $300 billion in new subprime mortgages would help about 400,000 struggling homeowners out of the 2.2 million borrowers who are expected to face foreclosure proceedings in the next few years. The agency also said the measure, sponsored by Senate Banking Chairman Christopher Dodd and ranking member Richard Shelby, ultimately cost FHA $729 million over a 10-year period to help guarantee new mortgages for those at risk of default. While the bill’s ceiling is $300 billion in new guarantees, CBO estimated that FHA would actually provide $68 billion in new loan commitments. The Senate bill has a narrower eligibility than a House version, sponsored by Financial Services Chairman Barney Frank, which would cost $1.7 billion and help an estimated 500,000 borrowers. The FHA refinancing program is part of a broader housing package that both sides are attempting to reach agreement on before July. The overall bill also is expected to revamp oversight at government-sponsored enterprises Fannie Mae and Freddie Mac, overhaul the FHA’s mortgage insurance program, and provide some housing-specific tax breaks.