The Dodd-Shelby Housing Bill: A Bad FHA Refinance Plan Hijacks GoodGSE Reforms
The Senate Banking Committee's housing package contains some veryimportant reforms and one very bad idea. Chairman Chris Dodd's(D-CT) version of legislation to use the Federal HousingAdministration (FHA) to refinance at-risk mortgages at a lowerinterest rate in return for a cash fee is still as wrong a way todeal with the housing finance problems as the House-passed version.Dodd has improved his FHA refinancing language by includingamendments by Senators Jim Bunning (R-KY) and Jon Test...
Source: heritage.org