Senate's mortgage rescue backed by Fannie, Freddie

Breaking news from Reuters: "Key members of the U.S. Senate have reached a deal on a sweeping housing rescue plan that would see Fannie Mae and Freddie Mac backstop a government mortgage insurance fund, two industry sources said Thursday.

More: "Sen. Christopher Dodd, chairman of the banking committee, said that a deal had not been finalized. But the plan outlined by the sources says the two mortgage finance giants would offer the funds to cover the costs of a $300 billion mortgage rescue fund."

One member of the Senate who will probably not be voting in support is our old friend Jim Bunning of Kentucky. Highlights of his comments today in opposition to the bill: "A major part of this bill is a big bailout for irresponsible lenders and borrowers.... The whole idea of bailing out people who took a gamble and lost is an irresponsible way to spend the taxpayers' money. I do not think the people back in Kentucky sent me to Washington to bail out speculators, Wall Street executives, and people who drained the equity in their homes to buy flat-screen televisions and new cars."

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.

Comments

[Laura in MD]

This legislation is absolutely unconscionable!

It is a moral hazard which rewards the banks and lenders that recklessly lent money to unqualified borrowers. Under this legislation, the guilty banks and lenders will not only be able to keep the exorbitant profits they made during the boom but can transfer their losses to the taxpayers by selling their bad loans to the FHA.

The borrowers who either irresponsibly signed loans they didn't read or understand, greedily bought more than they could afford, and greedily bought with the intent of flipping the properties for a quick buck will also be rewarded for their bad decisions.

Who will pay? Renters, homeowners (i.e. those that have paid off their mortgages), and responsible people paying their mortgages on time. We -- responsible citizens -- are the majority! Let's stand together and make our voices heard. NO BAILOUTS!!!!!

Sign the petition at: http://www.angryrenter.com/.

Write to your Senators and Representatives to let them know you will vote them out of office if they pass this legislation: http://www.congress.org/congressorg/home/.

Call or e-mail the White House to veto the housing bailout legislation: 202-456-1414 or 202-456-1111 or comments@whitehouse.gov

Just say: "I am calling to ask you to veto any housing bailout that comes out of Congress."

Now is the time to act! Don't sit silently by and allow these thugs to pick our pockets!

[Mark]

Wasnt there a fed requirement (that origionated in the Boston office) for mortgage loans to be made to minorities regardless of their capacity to repay the loan?

[gary]

MORAL OUTRAGE.................is that the new buzz word for somethng. Helping to subsidize americans is a moral outrage, but helping those ungrateful saudis and kuwaits who now tell us to "pound sand" about oil. Here is my one and only wish. I wish it was 1991 and sadam was on the border of saudi arabia and we said offered our help under the condition that oil for the USA will never be more than $20.00 per year for at least 99 years.ANd if china and india need oil, then charge them whatever you want. Keep in mind sadam and rummy and cheney were all buddies back then.