Bank of America Supports Senator Dodd's Plan to Help Mortgage Crisis

Bank of America backs Senator Dodd's plan to buy up Loans at a Discount

Bank of America officials have warned congress that up to $739 billion in mortgages are at risk of default in the next five years, and that the government intervention is needed.  This is why Bank of America supports Senator Chris Dodd, Democrat from Connecticut, proposal to create a government-chartered corporation, the Federal Homeownership Preservation Corporation (FHPC).  The FHPC would buy high risk mortgages at a discount while replacing the home owners mortgage with a 30 year fixed mortgages.  The 30 year fixed mortgage would be backed by Freddie, Fannie or the FHA.  Otherwise, these mortgages would ultimately end up in default.

Senator Dodd proposes the FHPC. would need $10 billion to $20 billion in startup capital, and then be self-sustaining. More or less be like one of the one of the GSEs.  Senator Dodd maintains such an effort would not constitute a bailout of lenders and investors, because only those willing to take a "haircut" and sell their at a discount would be eligible to participate. 

Other post you might be interested in are:

1. Mortgage Bailout? Don't throw the "Tax Payer" out with the Water? 
2. Bank of America's President Floyd Robinson Announced Project Lifeline to Help Distressed Borrowers 
3. Delinquent in Your Mortgage Payment? Don't Run! Don't Hide!
4. There Is HELP for the Delinquent Borrower!
5. Don't Make Foreclosure Worse for Yourself

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages.  Call AJ to talk about Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator. 

Alan 'AJ' Nisen
Mortgage Loan Officer
Email: aj.nisen@bankofamerica.com
http://mortgage.bankofamerica.com/ajnisen 
http://www.activerain.com/ajn