Subprime bailout, not FHA modernization
By admin | May 14, 2007
A bailout for the subprime industry is not exactly what the U.S. Department of Housing and Urban Development has in mind. The HUD is in full support of the FHA modernization to help out borrowers but is warning that a full blown bailout plan for the subprime market is not warranted.
HUD Secretary Alphonso Jackson expressed his sentiments at a press conference on Monday.
“FHA has been a blessing for so many people,” Jackson said. “However, reforms must be made for FHA to adapt to today’s marketplace. We have internally modernized FHA as much as we can. But, the time has come to bring FHA into the 21st Century. A new FHA could be an antidote for predatory lending and subprime difficulties.”
The HUD’s core belief in homeownership was reiterated by Jackson at the press conference as well as other beliefs which include the theory that homeownership is a long-term investment which should be without predatory and poor lending service in the mortgage industry. The proposed subprime bailout will “not resolve housing concerns” were Jackson’s final thoughts.
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