San Diego Housing Market News and Analysis
Senator Schumer at it again....
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Submitted by Coronita on May 3, 2007 - 10:22pm
What a douchebag
Schumer wants aid for subprime borrowers
WASHINGTON (Reuters) -- Community groups that help subprime borrowers try to save their homes from foreclosure would receive $300 million in aid under legislation introduced by Democratic Senator Charles Schumer Thursday.
The infusion of federal money would help consumer groups reach out to troubled borrowers and, in some cases, provide new financing directly.
The groups that would benefit from the money are in direct contact with delinquent homeowners and guide them through the complicated steps they can take to save their homes, said Sen. Schumer (D-N.Y.), chairman of a Senate subcommittee on housing and sponsor of the legislation.
"They know how to do it. Their role is critical," he said of the consumer groups that aim to help troubled borrowers.
"We've learned that borrowers who are delinquent on their loans are at a distinct disadvantage," when trying to change the terms of a bad loan, the New York Democrat said.
Companies such as Countrywide Financial (up $0.48 to $37.74, Charts, Fortune 500), Fannie Mae (up $0.88 to $60.70, Charts), Wells Fargo (up $0.12 to $35.81, Charts, Fortune 500) and Wachovia (up $0.23 to $55.60, Charts, Fortune 500) have made loans in the subprime market.
Schumer's legislation is the first proposal from federal lawmakers aimed at dampening the crisis in the subprime mortgage market that serves borrowers with damaged credit. Top of page
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