Boston Herald: Kerry plan would fund mortgage refinancing

[Luftmensch067]

The Senate’s proposed $155 billion package - which has been criticized by President George Bush and some Republicans - faces a “tough fight” next week in Washington, said Kerry.

But if the bill passes and the bond provision survives negotiations with the House, about $10 billion could be made available to states for use as tax-exempt bonds to help homeowners refinance their subprime mortgages to lower-rate mortgates, Kerry said.

Some of those funds would flow to Massachusetts, where hundreds of homeowners could be helped in communities hit hard by recent foreclosures, such as in Brockton and Lawrence, Kerry said.

Thomas R. Gleason, excecutive director of the quasi-governmental agency MassHousing, yesterday praised the mortgage plan proposed by Kerry and Sen. Gordon Smith (R-Ore.).

The Kerry-Smith provisions would allow the states to cumulatively sell an additional $10 billion in federally-tax exempt mortgage revenue bonds - and some of those funds would flow through agencies like MassHousing.

“With the capital markets drying up, the increase in mortgage revenue bonds means there will be more money available for affordable mortgages, something we desperately need,” said Gleason.

full article here

[BlueIris]

1. Kick. Kinda important. nt