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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 This material may not be published, broadcast, rewritten or redistributed.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 67 156 11,921
MORTGAGES 77 227 15,577
FORECLOSURE NOTICES 15 57 3,080
BUILDING PERMITS 222 606 28,832
BANKRUPTCIES 82 210 11,517
BUSINESS LICENSES 23 73 4,228
UTILITY CONNECTIONS 87 339 17,522
MARRIAGE LICENSES 18 61 3,625

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