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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 This material may not be published, broadcast, rewritten or redistributed.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 55 55 13,385
MORTGAGES 73 73 17,422
FORECLOSURE NOTICES 32 32 3,423
BUILDING PERMITS 623 623 31,553
BANKRUPTCIES 66 66 12,761
BUSINESS LICENSES 11 11 4,608
UTILITY CONNECTIONS 153 153 19,610
MARRIAGE LICENSES 44 44 4,104

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