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Schumer proposes blowing $300m to bail out subprime mortgages
Community groups that help subprime borrowers try to save their homes from foreclosure would receive $300 million in aid under legislation introduced on Thursday. The infusion of federal money would help consumer groups reach out to troubled borrowers and, in some cases, provide new financing directly.

The groups that would benefit from the money are in direct contact with delinquent homeowners and guide them through the complicated steps they can take to save their homes, said Sen. Charles Schumer, chairman of a Senate subcommittee on housing and sponsor of the legislation. "They know how to do it. Their role is critical," he said of the consumer groups that aim to help troubled borrowers. "We've learned that borrowers who are delinquent on their loans are at a distinct disadvantage," when trying to change the terms of a bad loan, the New York Democrat said.
Chuckie should get the 'Master of the Obvious' lifetime achievement award for that one.
Schumer's legislation is the first proposal from federal lawmakers aimed at alleviating the crisis in the subprime mortgage market that serves borrowers with damaged credit. Schumer's legislation also would give mortgage brokers, lenders and investors greater responsibility for loans that go bad. Lenders would be accountable for their brokers who use fraudulent means to sell loans, and investors might have to pay if the mortgages they own were offered to borrowers who were not fit to make the payments.
Posted by: Fred 2007-05-04
http://www.rantburg.com/poparticle.php?ID=187506