BernieHund: The Political Watchdog

Tonight on the News Hour, Senator Chris Dodd and Senator Richard Shelby discussed the housing crisis facing many families in America today as a result of the sub-prime mortgage fiasco. 

According to Dodd, the Bear Stearns event had an effect on the movement of the Senate, encouraging action in a bipartisan measure.  Unemployment rates and student loan rates are having an effect on people in addition to the sub-prime mortgage issue.  And, of course, debt exceeding the equity in homes has spurred action.

Senator Shelby added that when the Federal Reserve stepped in to stop the bleeding on Wall Street, it was time to stop the bleeding on Main Street.

Foreclosures, tax credits, modernizing FHA to help refinance, community development plans, state’s housing plans and veteran’s refinancing are all key issues that must be addressed.  The compromise underway is just a first step in rebuilding confidence in the economy and stemming a long term downturn.

Senator Dodd wants to raise the FHA loan limits on homes because FHA is presently unable to handle more expensive mortgages that are primarily based on the area of the country.  The mortgage revenue bond issue will be a real help as will counseling.  With approximately 7,000 homes going into foreclosure everyday there is a need to have local authorities assist in the refurbishing.  Tax credits are proposed for persons buying foreclosures.  This is a major plus to help keep blight from striking neighborhoods further lowering housing prices.

This is the first step of the year of bipartisanship according to Chris Dodd.  He continued to say that capital needs to be flowing so we must establish where the floor is.  He is talking about about a discount rate for owner occupied residences.  That will help establish the floor of the market and the crisis.  As a first step, it should help restore some confidence.  Hearings will be held to cover all the possibilities and ramifications.

But, at least the Senate, on both sides of the isle seems to be working in unison on this one.  Maybe in a crisis situation they can work together.