A key committee in the House of Representatives late Thursday passed legislation that would make up to $300 billion in federally insured mortgages available to borrowers facing foreclosure.

Under the principle provision in the bill, the FHA will guarantee a new loan to a troubled borrower/homeowner if the existing lender will agree to accept a short payoff. The proposed legislation still needs to be passes by both the Senate and by The President - each have their own version of the legislation under consideration.

There is no shortage of opinion as to whether this is wise or even practical legislation but it is certainly an effort to address a serious situation; an effort that may offer a much needed boost to consumer confidence. Read more about the legislation at Mortgage Daily News.

Brian Lucier

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