With Congress set to reconvene, the mortgage crisis is among lawmakers' top priorities.
Among some of the expected measures to be considered:
> A bill that would lift Fannie Mae and Freddie Mac's portfolio restrictions in an effort to add liquidity to the mortgage market.
> An anti-predatory lending bill that would federally regulate mortgage brokers and make mortgage-backed securities investors partially liable for problem loans. House Financial Services Committee Chairman Barney Frank (D-Mass.) is expected to propose the bill.
> Housing counseling to help curtail foreclosures. Sen. Charles Schumer (D-N.Y.) plans to propose that $100 million be earmarked in an appropriations bill for housing counseling.
> Meanwhile, President Bush has proposed enabling the Federal Housing Administration to back refinances of adjustable-rate mortgages in default or close to default.
> Kurt Pfotenhauer, Mortgage Bankers Association senior vice president of government affairs, says the trade group is in favor of uniform national lending standards. While he has no comment on the legislation to be introduced by Frank on anti-predatory lending, he does not think investors should be held liable for problem loans. Pfotenhauer also expresses concerns about an overreaction on the part of federal lawmakers, noting that "if we go too far in passing rules to protect people in the mortgage market, we could end up denying them access to credit."
Source: Daily Real Estate News
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