Democrats Draft Plans for Distressed Homeowners

Washington Post (03/19/08) P. A4; Montgomery, Lori
Senate Banking Committee Chairman Christopher Dodd, D-Conn., believes some officials in the Bush administration are now more open to embracing Democratic proposals to help homeowners avoid foreclosure following their efforts to keep Bear Stearns from sliding into bankruptcy. On April 9, House Financial Committee Chairman Barney Frank, D-Mass., will preside over a hearing on a measure that would increase the role of the Federal Housing Administration in renegotiating distressed mortgages and also provide as much as $300 billion in guarantees to new lenders; Dodd and Senate Majority Leader Harry Reid, D-Nev., plan to bring similar legislation as soon as possible. "I think they're far more supportive of this idea or something like it than they were a while ago," says Dodd. However, Treasury officials said on Tuesday that they have not expressed support for the plan; and Republicans have said they do not want taxpayers to shoulder the burden of a bailout for homeowners or lenders.