Video: The Senate Votes on FHA Bill - Experts Worry about Expansion in the Mortgage...

Video: The Senate Votes on FHA Bill - Experts Worry about Expansion in the
Mortgage Market
A Recent Poll for the National Taxpayers Union Found 60 Percent of Those
Surveyed Believe Taxpayers Would Be Most Negatively Affected if the Government
Bails Out the Subprime Market.

WASHINGTON, Dec. 14 /PRNewswire-USNewswire/ -- The Senate passed
legislation today expanding the power of the Federal Housing Administration to
help address the subprime mortgage issue. The bill would allow the FHA to
lower the minimum amount necessary to get a loan and raise the limit on the
mortgages the FHA can insure. But many experts are concerned that taxpayers
are being put at risk.
To view the Multimedia News Release, go to:
http://www.prnewswire.com/mnr/ntu/31128/

"Everybody is trying to propose that these agencies take on more risk,
that they insure bigger loans, that they accept borrowers who have put less
money down," said Dr. Jacob Vigdor, Economics Professor Duke University. "All
of these things are just going to shovel more risk on to more organizations
that aren't really well-prepared to handle it."
"This poll shows that Americans are very skeptical about what government
can and should do about the subprime mortgage problems," said Pete Sepp, VP
Policy and Communications, National Taxpayers Union. "By a two-to-one margin,
they are saying that banks and Wall Street will benefit more than homeowners
if the government steps in."
SOURCE National Taxpayers Union

Pete Sepp of National Taxpayers Union, +1-703-683-5700