US Senate to Vote on $700 Billion Rescue Plan
- By:
- Bill Rice | October 01, 2008
Hoping to gain additional Republican support the Senate has added to the House version of the bill provisions to expand FDIC bank deposit limits and tax breaks. The vote is scheduled to take place this evening.
FDIC Chair Sheila Bair gave a seemingly timid endorsement to the expansion of FDIC deposit insurance saying that she was, "willing to endorse a temporary increase in deposit insurance limits." The Senate bill would temporarily increase the current $100,000 deposit insurance limit to $250,000. FDIC's Bair is unquestionably nervous over the additional strain on the insurance fund with several institutions still in jeopardy and no apparent increase in insurance fees. Currently, financial institutions pay as little as $1 per $100 deposit and the fund has already been expanded to temporarily cover money markets funds.
Tax breaks added to the legislation is also expected to bring Republican support. The adjusted legislation would extend business tax credits to the production of use of renewable energy sources, research and development, as well as expand consumer the child tax credit, protect millions of families from the alternative minimum tax, and provide relief to many victims of recent natural disasters.
The addition of deposit insurance expansion and tax breaks is expected to overcome some of the political opposition. Meanwhile, a swing in voter sentiment may give the legislation the final push. Many Americans watched the US markets dramatically descend during the voting down of the House version of the bill. Congress has reported a flood of email and voice mails reacting in fear of this legislation not being resurrected.
President Bush and the two Presidential candidates, Republican John McCain and Democrat Barack Obama have voice the necessity and urgency of this new Senate versus of the $700 billion rescue legislation.
Bankruptcy Reform Back on the Table
- By:
- Bill Rice - MortgageLoan.com | November 21, 2008
One of the earliest ideas for helping homeowners facing mounting mortgage debt and potential foreclosure on their home was to reform bankruptcy laws. The concept is now officially back on the table, introduced into the Congressional lame-duck session by Senator Richard Durbin (D-IL).
TARP is Closed for Relief Until Further Notice
- By:
- Bill Rice - MortgageLoan.com | November 20, 2008
Remember what a crisis the $700 billion mortgage market bailout was--the very existence of the American financial order hung in the balance.
Fixing the Housing Market, Lots of Ideas...Any Answers?
- By:
- Bill Rice - MortgageLoan.com | November 19, 2008
Almost a year into the dawning of the housing crisis (many chronologist are setting that around the January 2008 crumbling of Countrywide) ideas continue to flow, but few seem to be the answer. In fact, this seems to be the growing consensus--there is no silver bullet.
G-20 Lots of Motion, Will There Be Action?
- By:
- Bill Rice - MortgageLoan.com | November 18, 2008
The 20 most powerful industrial nations, and now the caretakers of an unprecedented global financial crisis, assembled in Washington DC over the weekend. Their mandate was broad and daunting--stabilize world markets.
FDIC Challenges Treasury with New Loan Modification Proposal
- By:
- Bill Rice - MortgageLoan.com | November 17, 2008
On the heels of the Treasury and Federal Housing Finance Agency's (FHFA) loan modification plan for Fannie Mae and Freddie Mac, the FDIC releases their own proposal. In this unprecedented, unilateral, and aggressive move by a Federal agency the FDIC is essential fighting a very public political battle directly with the Treasury and the current Administration.
Mortgage Rates Drop for Second Straight Week
- By:
- Bill Rice - MortgageLoan.com | November 14, 2008
Another week of dismal economic data have again pushed down mortgage rates. Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.14 percent, down from 6.20 percent last week. This demonstrates a steep decline from 6.46 percent two weeks prior.
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