Government’s new plan to help homeowners

October 24, 2008 01:02PM

The government is trying to help struggling homeowners by
giving mortgage investors more incentives to agree to refinancing, but
lawmakers said they might go further after the presidential election in
November. The $40 billion plan would encourage mortgage investors to permit
struggling homeowners to refinance by having the government guarantee part of
the rewritten loans. Senate Banking Committee Chairperson Christopher Dodd said he was
considering a new round of legislation after the election to address troubled mortgages, including making a change to allow bankruptcy judges to rewrite
them.


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