FDIC chair proposes homeownership preservation loansMortgagePress.comFDIC, Sheila Bair, Congress, Financial Times, U.S. Treasury, foreclosure, Homeownership Preservation
Federal Deposit Insurance Corporation Chairman Sheila Bair
outlined in an op-ed piece in a recent issue of Financial Times a proposal that
would assist one million homeowners who are facing foreclosure.
The plan proposes that Congress authorize the U.S. Treasury to
use $50 billion to make loans to borrowers with unaffordable
mortgages to pay down up to 20 percent of their principal. The
repayment and financing costs for these Homeownership Preservation
(HOP) loans would be borne by mortgage investors and borrowers.
This approach is scaleable, administratively simple, and will avoid
unnecessary foreclosures to help stabilize mortgage and housing
More details about the plan are available on the FDIC's Web site
by clicking here.