Shelby: Housing Rescue Will Be Enacted
After intense negotiations with Democratic counterparts, Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee—and a key opponent of previous Democratic efforts to pass a housing bailout—says he has reached agreement with Sen. Chris Dodd, the Connecticut Democrat who chairs the committee, on a housing package that would enable struggling homeowners to refinance into more affordable loans and create a stronger regulator for government-sponsored enterprises Fannie Mae and Freddie Mac.
Shelby spoke with The Home Front this morning. Excerpts:
What is the status of the negotiations between you and Senator Dodd on the housing package?
We have an agreement, a conceptual agreement. We are in the process of working out some of the language and a few remaining details. Senator Dodd has scheduled a mark-up on Tuesday. I feel at this point that our package will garner strong bipartisan support. I believe the White House and the Republican leadership will support this approach.
You will recall, and I've spoken on this before, my primary consideration as we have negotiated this package has been to protect the taxpayer. And I believe—without going into a lot of details, you'll have to wait on those—we have made significant progress toward that goal as far as the housing component and as far as [government-sponsored enterprises]. I've been in that fight for about five or six years, and I've pushed for a stronger regulator for years that can deal with some of their capital products, and this bill is moving down that right road. It would be a big improvement over what we have, and [we are] working together. I believe we are going to move this bill, but we told each other we wouldn't go into details until they dot the I's and cross the T's.
How would the liability of the rescue be transferred away from taxpayers?
We're moving it away from the taxpayers.
Are you confident that the Bush administration will support this bill?
I believe they will like this bill.
So this is something we are going to see enacted?
I think we are. We are not quite there yet. We're sitting on the diamond, and it's coming Tuesday. I'd tell you more if I could.
Tags: legislation | Senate | housing market
Tools: 
Share
|
| Comments (3)
Reader Comments
This Housing "Crisis" is made up and cheap politics
Anyone who took a basic Macro class freshman year in college can figure out that there is no crisis. What's going on is called a correction. Since when are people entitled to high home prices. I'm not entitled to have a stock at it's 52 week high. The logic of people who support a bailout is incredibly idiotic. They say that everyone hurts when home values fall. Well I guess if that home in Compton was really worth $400,000 and that home in the desert outside LA is really worth $500,000, then they are right, Why can't people figure out that these prices were phantom and inflated by loose underwriting and irresponsible borrowing?
I agree 100% with the above poster
I've lost all faith in America. I've been screwed on the way up...I waited and did not buy...now I'm being screwed on the way down. I used to be a patriot now I care less about this country - I only care about my family and making money any way I can - screw this government.
To: Lou of California
With so many people in jeapordy of losing their homes and the rest of us in dire straights due to gas prices, increased food prices, banks experiencing some difficulties and the Stock Market's reaction I would think we are in a crisis...not just a little correction! I do agree with you in regard to inflated home prices and very loose underwirting guidelines. Irresponsible borrowing is right. Too many people want what they want, when they want it.. I seriously oppose a gov't bailout that could potentially land on the laps of us who have been a bit more prudent. That certainly would not be fair! I am glad to see that there will be stricter guidleines for Fannie and Freddie.
Add your thoughts
All comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ.advertisement
