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VOL. 123 | NO. 32 | Friday, February 15, 2008

Report: Bankers Want to Shift Some Risk of Loans to US

AP

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WASHINGTON (AP) - A plan to limit damage caused by the mortgage mess that is gaining traction in Congress and the administration would make it easier for banks to write off part of the unpaid balance on loans that exceed a property's value, The Wall Street Journal reported, citing people familiar with the matter.

Another proposal, from Credit Suisse Group, would increase loans guaranteed by the Federal Housing Administration to cover some delinquent borrowers, the newspaper said.

The bank, in a summary given to regulators, policy makers and lawmakers, said the plan would make $89 billion in subprime loans eligible for refinancing, the paper said.

That also means that if delinquent borrowers default on their refinanced loans in large numbers, the federal government would be liable, the newspaper said.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 84 84 5,157
MORTGAGES 103 103 6,812
FORECLOSURE NOTICES 15 37 1,593
BUILDING PERMITS 0 0 11,979
BANKRUPTCIES 60 105 5,405
BUSINESS LICENSES 28 28 2,089
UTILITY CONNECTIONS 97 97 7,155
MARRIAGE LICENSES 24 24 1,482

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