September 17, 2014
The original intent of this massive housing bill was getting homeowners caught in the credit crunch into more affordable mortgages. But, the bill will also give a financial lifeline to mortgage giants Fannie Mae and Freddie Mac if they need one.
The Bush administration is pusing for the housing measure because of the help if would provide Fannie and Freddie. But, it's also threatening a veto because the bill includes about four billion dollars for communities to buy, fix-up and resell foreclosed properties.
Supporters of the measure point to a need to restore market stability and investor confidence. Critics say granting unlimited support for the mortgage giants opens up taxpayers to huge losses.