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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 This material may not be published, broadcast, rewritten or redistributed.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 62 340 3,755
MORTGAGES 104 472 5,266
FORECLOSURE NOTICES 23 129 1,200
BUILDING PERMITS 0 574 9,139
BANKRUPTCIES 69 314 3,656
BUSINESS LICENSES 34 137 1,554
UTILITY CONNECTIONS 74 1,028 4,943
MARRIAGE LICENSES 20 114 1,024

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