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April 2008 Newsletter

April 01st, 2008 | Category: Newsletter

In This Issue:

-Foreclosure Legislation Moves Forward
-Ohio Vacant Property Report
-CT Reponsible Growth Task Force Update
-Restoring Prosperity Case Study
-News Articles
-Reports and Studies

Foreclosure Legislation Moves Forward in Congress

U.S. Senate Democrats and Republicans are close to passing compromise legislation providing help to distressed homeowners to avoid foreclosure.  While the exact shape of the final bill to be passed is not yet clear, there are a few proposals being offered, including:
- Allowing bankruptcy judges to cut interest rates on subprime mortgage loans
- Providing $4 billion for communities to buy and redevelop properties in foreclosure
- Providing up to $10 billion for bonds to refinance subprime mortgages in danger of defaulting
- Increase funding for housing counselors to provide advice to borrowers
   
In the House, Rep. Barney Frank (D-MA) has proposed allowing the Federal Housing Administration to guarantee up to $300 billion in risky mortgages for encouraging housing lenders to make subprime loans more affordable.  Lenders would be required to refinance mortgages at  market value, to be no more than 85 percent of the current loan.

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