Democrats' Housing Plan Faces Bush Veto

Measures To Bail Out Borrowers Slated For Congressional Votes, White House Vows Veto

(AP)  Strapped homeowners could refinance into government-backed mortgages and states would get money to deal with foreclosed property under Democrats' housing aid plan.

The measures, slated for votes Thursday, constitute the most significant action Congress has taken to date to address the housing crisis that's at the center of the nation's economic woes.

President Bush has threatened to veto both measures, which he says reward lenders and speculators. Democrats counter that the bills will head off hundreds of thousands of foreclosures, stabilize the shaky housing market, and prevent neighborhood blight.

The centerpiece of their plan is a bill by Rep. Barney Frank, D-Mass., the House Financial Services Committee chairman, to have the Federal Housing Administration relax its standards and back up to $300 billion in more affordable, fixed-rate loans for borrowers currently too financially strapped to qualify.

Those homeowners could refinance into new loans if their lenders agreed to take substantial losses on the original mortgages. Borrowers would have to show they could afford to make payments on the new loans. They would have to share with FHA at least half of their proceeds if they profited from selling or refinancing again.

The plan is projected to help roughly 500,000 borrowers at a cost of $2.7 billion over the next five years.

A separate bill by Rep. Maxine Waters, D-Calif., would send $15 billion in loans and grants to states for the purchase and rehabilitation of foreclosed properties. Proponents say it will prevent blight in neighborhoods plagued by abandoned, foreclosed homes.

But Republican critics argue it rewards lenders and investors who own the property, and could act as an incentive for them to foreclose rather than find ways to help struggling borrowers stay in their homes.

Democrats, seeking Republican support for their housing package, were planning to attach a grab-bag of measures Mr. Bush has called for.

Those include legislation to overhaul the FHA, to more tightly regulate government-sponsored mortgage giants Fannie Mae and Freddie Mac, and authority for state and local housing finance agencies to use tax-exempt bonds to refinance distressed subprime mortgages.

The plan is also to include a housing tax credit of up to $7,500 for first-time home-buyers, to be paid back over 15 years. It would permanently raise the limit on the size of loans FHA could insure and Fannie Mae and Freddie Mac could buy to $729,750 in the highest-cost housing markets. Those caps are scheduled to fall at the end of the year, to $362,790 for the FHA, and to $417,000 for Fannie Mae and Freddie Mac.

[j62kd4b]

Prayers that the 110th Congress can UNITE and get the 60% of Senate vote to DISABLE this VETO - what would it cost to enable this plan - a few days "time-out" from BOMBING IRAQ?
GW Bush DESERVES A VETO himself over these last 250 days! Unfair this 43rd President didn''t VETO a single 109th Republican Congress item - but, the Democratic 110th DID NOT DESERVE GWB''s BIAS which has made it ineffective!

[trademan038]

i thought CBS news tells nothing but the truth on news?? so why are they so scare of bush? why they just don''t come out and just tell people the truth about bush like Dan rather tell to do and got fired for it? why do what bush wants you to do if its wrong? later on it might come back on you about what you did, so its better to get the truth out then to eat your own mess

[bluestardad]

REPIGS ALWAYS TAKE THE BIG MONEY BIG OIL BIG INDUSTRY INTERESTS OVER THE COMMON AMERICAN!

REFERENCE KEATING 5 SAVINGS AND LOAN SCANDAL!

AMERICA STAND UP OR SHUT UP!

[olebd]

Nice camera angle for this picture. Makes him look as tall and mighty as he feels. Yet, notice how the arms hang dodwn and the knuckles want to drag on the ground. Notice the famous smirk. Looks like a monkey in a suit.

[excoachken]

"Now, if y''all include a bailout for $4+ penthouse apartments for oil company lobbyists, in D.C., we might have a deal." added the Cowardly Cowboy.

[stn_sage]

Well, obcourse he''s going to veto it!

The bill is not designed to bailout a big business!

It''s designed to help the public. It''s an attempt to stop people from losing their homes, from being made homeless with their children, and from living on the streets and sidewalks of AMERICA!

Bush and the GOP demonstrate in (mis)deeds, day after day, their LACK of family values and hatred of the very public they''re suppose to be serving!

RepubliCONS and family values?! HUH! That''s a laugh!!

[jack3213]

"But Republican critics argue it rewards lenders and investors who own the property, and could act as an incentive for them to foreclose rather than find ways to help struggling borrowers stay in their homes. "


REPUBLICANS WANT YOU TO FIGHT FOR YOUR WELL BEING AND STOP LEANING ON THE GOVERNMENT- DEMOCRATS WANT TO HOLD YOUR HAND THROUGH LIFE. WHICH SIDE OF THE FENCE WOULD MAKE YOU FEEL LIKE A GROWN UP?

[Gary Kempf]

REPUBLICANS WANT YOU TO FIGHT FOR YOUR WELL BEING AND STOP LEANING ON THE GOVERNMENT-


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Posted by JACK3213 at 07:22 A

Why didn''t this apply to Bear Sterns, or the other banks that are taking tax dollars at special bale out low interest rates???????????

[fairandbal]

Bush demands a bailout for the oil companies already making obscene profits and giving no bid contracts to his private defense contractor buddies, but helping the little guy. NO WAY!

the GOP is all about the corporation folks, s-c-r-e-w any of you!

[omnibus66]

REPUBLICANS WANT YOU TO FIGHT FOR YOUR WELL BEING

Posted by JACK3213 at 07:22 AM : May 08, 200
----------------------------

What a joke!

The truth is:

Repugnicans want to take your money, if you''re poor, and give it to the rich.

Repugnicans want to continue wasting lives and money in Iraq for 100 years.

Repugnicans want to deny health benefits to children.

Repugnicans want to spy on everything you do, 24/7.

Repugnicans want to keep raising oil prices, it makes them even richer.

Repugnicans want to drive you out of your home, it''s good for the rental market.

If it''s good for the poor, or the middle class, the Repugnicans are against it.

[mcvet]

REPUBLICANS WANT YOU TO FIGHT FOR YOUR WELL BEING AND STOP LEANING ON THE GOVERNMENT- DEMOCRATS WANT TO HOLD YOUR HAND THROUGH LIFE. WHICH SIDE OF THE FENCE WOULD MAKE YOU FEEL LIKE A GROWN UP?



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Posted by JACK3213 at 07:22 AM : May 08, 2008
+ report abuse

For over 30 years now we have listened to LIAR''s like this jerk, all the while our standard of living has gone right down the tubes. We are going to become the FIRST Generation in the History of this country to fail to pass along a better way of life to our kids. WHY? The Repubilcan Party, who sold their souls to a bunch of Fascist... Fascist who want to blame their fellow citizens for their OWN failures and bad Economic Policies. If you have a History Book YOU KNOW the Democrat Party is the ONLY way to go in November. Let''s end FASCISM now and forever in this nation. Sieg Heil Bush

[stn_sage]

RepubliCONS are short-sighted and without wisdom.
Democrats are thinking long-term and are being wiser!

What''s the ''multipler effect'' of dumping another 2-5 million people on the streets---remember, we''re talking about families, not all single individuals here?! The drain on food banks, crisis centers, increased hospital care, violence, crime, and eventual incarceration!?

If we do it the RepubliCON way, the problems get BIGGER, more EXPENSIVE, and will eventually result in collapse of the system!

When THAT happens, my RepubliCON friends, how good are YOU going to FEEL about that?! NO! Then you''ll do what you always do---turn around and blame the Democrats for it!

[haoli25]

Is it any wonder why this idiot is the most hated president in U.S. history?

[rowdytexan2]

This is your Nanci Pelosi democratic congress that back Obama! They haven''t been able to reach across the aisle and pass ONE piece of effective legislation!

All they''ve done is allow Bush to veto their bills and send them back and have them written his way!

[rowdytexan2]

Your Nansi Pelosi congress doesn''t even have the guts to impeach Bush for his war crimes!

Obama will get in there and work for the oil companies just like BUSH does.

[singingrick]

Bush would rather bail out huge banks who have predatory lending practices and made reckless, speculative loans after being deregulated.

[forthepeopl1]

ALL THEY HAVE TO DO IS MAKE ALL MORTGAGES FROM 2000 TO 2007 ALL GET RE-FI AT A GOOD RATE LIKE 1 OR 2 POINTS OVER PRIME, THATS ALL AND IT WOULD STOP EVERYTHING ONCE AND FOR ALL.

TAKE WHAT THE MORTGAGE IS NOW MINUS 60 % PERCENT OFF AND RE-FI EVERYONE..THIS WOULD STOP IT ALL, AND STOP PUTTING GOOD AMERICANS ON THE STREET.

I JUST HAD MY REALTOR APPRAISE MY HOME I BOUGHT 6 YEARS AGO, PAYED 300,000 FOR IT NOTHING SPECIAL IN A SMALL TOWN IN MASS, NOW HE SAID ITS WORTH MAYBE 150,000 BUT REALLY THINKS IT WORTH 100,000..SO GUESS WHAT WHAT THE BANK WILL OWN IT FOR 300,000 BECAUSE THEY DONT WANT TO HELP IN MAKEING THE VALUE THE 100,000 TO 150,000, AND EVEN AT THAT RATE HE SAID IS BETTER THAN WHAT THEY ARE GETTING AT FORCLOSER SALES, THEY ARE GETTING 20 TO 30 CENTS ON THE DOLLAR. SO IT WOULD MAKE SENCE TO JUST RE-FI EVERYONE AT 40 PERCENT AND START OVER. THIS WOULD STOP EVERYTHING...

[e-mail]

THIS IS ONLY WAY TO STOP ALL FORCLOSER

[oleander8]

"Your Nansi Pelosi congress doesn''t even have the guts to impeach Bush for his war crimes!"

To all the Democratic Congress bashers --- it takes more than a one or 2 member majority to impeach the president or override his vetos --- give them a significant majority in November and you will see things start to happen.

[abbe91]

"So, what, basically if it might be a good idea or help someone, Bush is against it. Glad we got that straightened out.
Posted by babykilller at 06:10 AM : May 08, 2008"

Let''s see how McCain is going to vote on this one. Or is he just going to be against it, like for H.R. 2831 (Fair Pay Act) ?

[singingrick]

If the Democrats had only found a way to help Halliburton and Exxon in this bill, Bush would have been all for it. The problem is that it helps working people.

[sgtrds]

Help is coming though. President Barack Obama is coming. A Democrat controlled Congress is coming.

[sgtrds]

And to think, some idiots want 4 more years of this garbage under a McSame regime. Including some bitter Hillary supporters who''ll sacrifice what''s best for the American people on the alter of their anger at losing the nomination. Here''s hoping they at least have the guts to re-register as GOPigs so we can all tell who they are more easily.

[mbburch06]

This Democrat proposal will benefit those who bought a house they could not afford and the banks who made risky loans. The Dems are always talking about "greed," well, this bill rewards greed. Freedom and responsibility go together. If we want this country to be free, then idiots who make poor decisions have to be held accountable. You can''t come crying to the Federal government every time something goes wrong. I am no fan of GWB but I applaud his stand on this particular issue. If the Democrats in Congress get what the ywant it will only encourage more irresponsible investment and business practices down the road.

[singingrick]

starsnbars12


The reality is that over 60% of those who were sold sub-prime loans had good jobs, good credit, and qualified for fixed rate loans. Loan officers got big commissions for selling the sub-prime loans and banks hid the terms in the fine print. I''m sorry that you are a moron.


lol!

[sgtrds]

The choice this November could not be more clear. Do you hate the average American or do you hate the ticks that are feeding off from them. If you hate the vermin feeding off from them then vote Barack. If you''re a tick or too effing ignorant to realize your blood is being sucked away from you, then vote McSame.

[singingrick]

This whole mess began when Republicans deregulated the banking industry.

The same thing happened with the savings and loan crisis during the Bush/Reagan years.

[lewiston14]

So they sent your jobs elsewhere and are now trying to take your houses. Good sent the bank the keys and stop paying even a dime towards any debt you have. Lets see them get over that. Bankrupt the country that will be sort of hard to ignore. Call on China and india to call in their loans. Gee no more money for wars or aid. You can only fight the system one way MONEY or lack of. Set up parties and contests to see who can be the biggest deadbeat in the neighborhood. No cops no fireman no nothing. Remember we are third world allready might as well act the part.

[janiet3]

Help is coming though. President Barack Obama is coming. A Democrat controlled Congress is coming.
--------------

Sarge, can we hold on that long? The water is already up around our knees.

[singingrick]

jamesm12341


The reality is that over 60% of those who were sold sub-prime loans had good jobs, good credit, and qualified for fixed rate loans. Loan officers got big commissions for selling the sub-prime loans and banks hid the terms in the fine print. This whole mess began when the Republicans deregulated the banking industry which allowed them to engage in predatory lending practices.

I''m sorry that you are a moron.

Hurry, change your moniker and agree with yourself again.


lol!

You forget how fast our "government" helped out Bear Sterns. So if you have billions of dollars you get all the hlp you want for your gambling addiction (er speculative investments) and if you down here, sorry, your a speculator. Sad

[bgwinnett]

singingrick -- you''re casting pearls before swine when it comes to jimbo.

[Gary Kempf]

dragonwagon5 ;
That would require them,(republicans) to admit that something might be a miss in the current administration....

You are asking a alot of them, seperate your questions, so they may absorb each, allow time for them to gather a thought.

Alright, I realize that won''t happen, it would require active brain cells, my bad.

[liberalme]

libs need the government to take care of them

Posted by jamesm12341 at 08:52 AM : May 08, 2008

I sure hope your children have retained more information than you have jwind11--you are pathetic with your posts.

The above article is why the Neocons accuse the dems of not getting anything done--The repukes won''t go along with it and Big shot Bush will veto it anyway.

[liberalme]

Osama Bin Laden is our friend"..moron.

Posted by starsnbars12 at 08:26 AM : May 08, 2008

No no no---he is Bushs friend, that''s why he "doesn''t know where he is and doesn''t give it much thought"!
That''s you arrogant presidents "other" family!

Actually they are "blood" brothers!

[sgtrds]

NO, we can not afford it...we have Iraq to rebuilt.
Bush''''s priorities and McCain''''s follow-up for the next 100 years.

Posted by nikosk1 at 08:43 AM : May 08, 2008

That''s right. $70 billion more dollars for war to be funneled into the bank accounts of the already sickeningly rich and scr*ew the average American. The Bush administration really has been successful in it''s economic goals. The only problem is that those goals were to siphon off as much taxpayer money as possible and pour it into the hands to the new nobility, the monied elite. This is class warfare and the American people are losing.

[sgtrds]

What I''m waiting for is his next proposal, having those people who are losing there houses be allowed to remain in them, but as tenet farmers and serfs of the rich. It''s coming to that.

[mbcsmith]

We have to simply because we have no choice. We''''re still facing several more months of the GOP philosophy of give to the rich and scr*ew everyone else. They pretty it up by saying people need to "take more responsibility" when they''''re victims of con jobs, but their individual responsibility garbage really means nothing more then every man for himself and if you can''''t swim then scr*e you, drown. We''''re a better country and a better people then that, but in their eyes we''''re divided into only two groups, predators the those they feed on.


--------------------------------------------------------------------------------

Posted by SgtRDS at 09:20 AM : May 08, 2008



Here''s a reality. A large number of these "sub-prime" loans are No-document loans, meaning that these lenders performed nothing more than inquiries of the borrower as to their ability to repay. No tax returns, w-2''s or other verification of these borrowers income.
At the same time, these borrowers were allowed to borrow with NO MONEY DOWN.
The result, borrowers walked away from homes with NO ECONOMIC PENALTY. They had nothing invested and they lost nothing when they defaulted. The few mortgage payments made were no more than the rent they would paid.
When the government gets involved in these types of schemes, it is always rife with fraud.

[bgwinnett]

What I''''m waiting for is his next proposal, having those people who are losing there houses be allowed to remain in them, but as tenet farmers and serfs of the rich. It''''s coming to that.

Posted by SgtRDS

Get ready for "indentured debt servitude": the new American slavery, where tens of millions of Americans will be forced to work off their unsecured debts, forget wage slaves we''ll be -- well a lot of us anyway -- debt slaves

[walt1944-2009]

The Great Emperor Bush II is once again poised to show how much he thinks of the average USSA citizen by promising to veto the Whimpo-cratic bill that would help homeowners hang on to their homes.

He is sure that his veto will be upheld by the stupidly-loyal neocon Fascist Nazi Republicans in Congress, who feel its more important to please the Great Emperor than it is to help the people who elected them to Congress.

Instead, The Great Emperor plans on taking the money that would have been spent on helping homeowners here, and continuing his wars of conquest in the Middle East.

WHAT A GUY!!!!

SIG HEIL, BUSH!!!!
sig heil, DEFINITELY MORE OF THE SAME, McCain!!!!

I don''t hate ya pal, heck i don''t even know ya. Signed a hated lib.

[jersupporter]

The plan is projected to help roughly 500,000 borrowers at a cost of $2.7 billion over the next five years. That is $5400 for 1/2 million people who could not handle their finances and got in way over their heads. Why do we not have $1 billion plan to recoup money for gamblers that lost their money. Only a loser or LIB would think this is a good plan - but I guess that fits the bill for many here and the Dumbocratic Congress. LMAO

[bgwinnett]

amazing...libs rely on the government but hate it when you remind them of it....look at all the hateful post to me.

Posted by jamesm12341 at 09:33 AM : May 08, 2008

Libertarian are you then?
If so don''t ever get calling the police if a burglar ever breaks into your home, that would be hypocrisy.

[jersupporter]

What I''''''''m waiting for is his next proposal, having those people who are losing there houses be allowed to remain in them, but as tenet farmers and serfs of the rich. It''''''''s coming to that. Posted by SgtRDS at 09:26 AM : May 08, 2008
--------
you have a choice then....become rich or stay poor Posted by jamesm12341
------------------------------
LMAO - good one - I guess SgtRoids thinks he deserves more because he is a dummycrat. 2 funny

[liberalme]

amazing...libs rely on the government but hate it when you remind them of it....look at all the hateful post to me.
Posted by jamesm12341 at 09:33 AM :

Well jwind11...unlike you, most of us dems and repukes were not born into wealth..we work hard for it and are not privy to handouts (are you?).

We have hardly been taking anything from our government because our government has been busy robbing us blind!
jwind11 it has been OUR tax money this government has been freely spending--not on the welfare of our country or our troops--but on their own greed!

You jwind11 are one of the wealthy this government keeps providing for--or you''re on one of the government programs--either way jwind11 the government IS TAKING CARE OF YOU!!!

[Gary Kempf]

did you get the life memo of personal responsibility?


--------------------------------------------------------------------------------

Posted by jamesm12341 at 09:45 AM : May 08, 2008

I guess you didn''t bother reading it, if you got it....

[displeased]

Why do we not have $1 billion plan to recoup money for gamblers that lost their money.
Posted by JERSupporter

I don''t know. Maybe gambling loses don''t have the impact on the economy as the housing market does.

[omega39-2009]

Why do we not have $1 billion plan to recoup money for gamblers that lost their money.
Posted by JERSupporter

We did, it was called the Bear Stearns bailout.

[bgwinnett]

We did, it was called the Bear Stearns bailout.

Posted by omega39 at 09:55 AM : May 08, 2008

Yup, gambling is known as speculation or derivative trading on Wall St.

[bgwinnett]

you saying 80 percent of americans think the government should take care of them?

Posted by jamesm12341 at 09:59 AM : May 08, 2008

No they are bearish about the economic situation.

[briannorwood]

President Bush has threatened to veto both measures, which he says reward lenders and speculators.

AND I SUPPOSE BAILING OUT BEAR STEARNS IS NOT REWARDING LENDERS AND SPECULATORS?

God, I cannot wait till this moron is run out of town on a rail!