- May 25, 2002
- Professional Status
- Certified Residential Appraiser
$300 Billion in Guarantees
Frank's plan would have FHA provide as much as $300 billion in guarantees to help refinance loans for borrowers at risk of foreclosure. Participating lenders or mortgage holders would reduce principal in exchange for a payment from the proceeds of a new FHA loan. The plan could help 1 million to 2 million borrowers, according to a draft of the bill.
Robert Steel U.S. Treasury's undersecretary for domestic finance, declined to rule out Frank's plan.
``I haven't seen the details of Chairman Frank's proposal, but we're focused on homeowners,'' he said in an interview. His remark seemed to signal a more conciliatory stance compared with Treasury Secretary Henry Paulson's March 5 remark that any proposal using taxpayer money was a ``non-starter.''