WASHINGTON — House Financial Services Committee members began consideration Wednesday of measures that supporters say would provide relief to individuals and communities impacted by the foreclosure crisis.
The panel discussed a measure by Committee Chairman Barney Frank (D-Mass.) and Rep.Maxine Waters (D-Calif.) would make $15 billion in loans and grants available to states and cities to deal with problems caused by the foreclosure crisis. Some of the funds could be used by governments to purchase foreclosed properties.
Republicans on the panel say the measure is too costly and would reward lenders, investors and speculators and possibly make foreclosure a more attractive option for lenders.
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NAFCU Director of Legislative Affairs Brad Thaler said while his organization has not taken a position on the bill, it benefits credit unions by helping governments take some of the foreclosed properties off the hands of financial institutions.
CUNA has not taken a position on the measure.
On Thursday, the committee is scheduled to begin considering Frank's proposal to create a federal insurance fund to guarantee up to $300 billion in refinanced mortgages.
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