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GOP to offer cut rate mortgages in stimulus bill, Ensign says

WASHINGTON – Republicans this week will push to broaden the nation’s economic recovery package to do more for housing, including a proposal that could allow homeowners to refinance their mortgages at a bargain 4 percent rate, Sen. John Ensign said Sunday.

As the Senate prepares to debate an $888 billion stimulus bill, Ensign, R-Nev., said Republicans will focus on falling home values, which he said remains “the cancer” behind the nation’ economic crisis.


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  • One GOP amendment would call for government subsidies to enable homeowners to refinance their mortgages at an interest rate of 4 percent, he said on the CNN talk show “State of the Union.” The average rate on a 30-year fixed rate mortgage currently is 5.1 percent, the Federal Home Loan Mortgage Corp., reported Thursday.

    Ensign said the proposal would bolster the housing industry while putting $400 or more monthly into the pockets of average homeowners. “That would be very stimulative and if you combine that with properly targeted tax cuts, we could get this economy growing,” he said.

    During the Republicans’ weekly radio address on Saturday, Senate Minority Leader Mitch McConnell of Kentucky mentioned the plan. He estimated the average family would see its monthly mortgage payment drop by $466 a month, or $5,600 a year. Over the life of the loan the savings would be $167,760, he said.

    An Ensign spokesman said Sunday the amendment still is being drafted, and Republicans have not come up with a cost yet. Democrats have said they would be willing to take a look at it, but outside experts say the expense and complications of re-doing millions of mortgages could make it unworkable.

    A number of senators have said the stimulus bill being considered by the Senate does not do enough to address housing as it seeks to create jobs by pumping billions of dollars into the economy .

    “Regardless of the jobs you are going to create you are not going to treat the cancer that is affecting our economy, and that is the housing problem,” Ensign said. “The cancer spread to other parts of the economy but it still is the underlying problem.”

    In another bid to reduce the number of homes lagging on the sales market, Republicans also are considering amendments to sweeten tax breaks for first time homebuyers, offering a credit of $15,000.

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    KD wrote on February 04, 2009 08:30 PM: If Ensign somehow gets this included I'm donating to his next re-election campaign. And I'm as Democrat as it gets. This is the best idea I've seen to reward the millions of Americans that didn't do anything to cause this mess. Seems like it would be insanely complicated to execute so I'm not going to get my hopes up but it's still a great idea. Way to go John!


    Dan wrote on February 01, 2009 11:34 PM: Great, and those of us who rent, what about us? Decrease our rent.
    This is a stupid idea from Ensign.


    Where The Money Goes wrote on February 01, 2009 10:10 PM: http://stimuluswatch.org/


    Patrick wrote on February 01, 2009 08:52 PM: To Harry. 1,000,000,000,000 divided by all the families in the US, which let's say is 100,000,000, does not get everyone 100,000 each. It is only 10,000 each. I hope you are not the same person that had the same math for the TARP.

    So what it means is that for those of us that pay taxes, like my family our tax liability will go up.

    Here is a novel idea. Maybe the 40% who are not paying taxes who typically use most of all government services pay $1,000 each in taxes for once. That would be awfully patriotic of them wouldn't it. It would generate a quick 40 Billion also (Harry do the math 40,000,000 x1000 = 40,000,000,000). Note if you make 0 you should pay 0, but maybe the government should employ them to pay for all the services that have to be provided to them.

    Maybe if everyone paid federal taxes a lot of these problems would exist. Everyone talks about socialized healthcare from other countries, but the last I check and I dont' know the details everyone has to pay their taxes.

    Everyone needs to "Pay what they owe". Too many free rides and our esteem government officials are making this more difficult then it should be.

    Middle class is getting hammered and giving more money to people who didn't earn it to begin with is not the answer.

    Money for Acorn, Endowment of the Arts, Global Warming Studies, etc. is a waste of our hard earned money. Build bridges, pipelines, water purification plants (Don't you think we will need several of those in California), which buy material, equipment from American suppliers and labor.

    Thanks for your support


    John_Spendsin wrote on February 01, 2009 08:44 PM: We don't want to hear any more solutions to the non-problem of folks who paid too much for their homes. I don't ask you to reimburse me for the capital losses on my stock portfolio. Please don't ask me to bail you out of your mortgage.

    I never bought a home. I thought prices were too high. When prices were rising at double digit rates, and all you super-leveraged real estate owners were getting rich, I didn't protest. You weren't offering to share your windfalls with me. Now you want me to share your losses?

    There were no popular calls for the government to help renters. No one rented me a house unless I could show proof of income. Yet I never heard appeals for rent relief because we're "all in this together".

    Let the market adjust. When asking prices for homes (like the one I'm renting) drop to $300K (down from > $900K), then maybe I'll be able to afford one. The relief you miserable speculators seek comes at the expense of folks like me.


    Stuart & Robert Wyman-Cahall wrote on February 01, 2009 08:30 PM: Finally, it seems like Sen. Ensign may be getting with the program!!
    We are lookin for post partisan solutions to our problems and have ripped Sen. Ensign and Republicans for not comming up with any creative ideas for getting us out of this mess they helped create.
    This may work, this may not work, BUT it shows a willingness by Sen. Ensign to put aside party politics, think outside the box, and try to help out MIDDLE CLASS Americans in a time of economic hardship not seen since the great depression.
    Hats off to you, Senator!
    Stuart & Robert Wyman-Cahall
    Las Vegas, NV 89142


    roger wrote on February 01, 2009 08:29 PM: Mary.. well said. I have commented on articles like this with the same thoughts..fix the problem for EVERYBODY, as it is now the irresponsible will get relief, and those fortunate enough to have equity will get a gift rate reduction. While the others will be penalied to the point of never recovering.


    Mary wrote on February 01, 2009 07:54 PM: Wow, no wonder our country is in the mess it is in. I read what people have written and you are completely missing all the points. There is not just ONE solution to this crisis. I bought my home and now owe more than it is worth. That is not my fault that the market crashed because of greedy Wall Street, banks, real estate agents, brokers. Get real, we are all in this together. Good for you if you still have equity you are fortuate and few. Mark my words, if Congress doesn't look at the big picture, realize the only way to stop the foreclosure mess is to allow ALL homeowners regardless of value to re-finance at the value of their home at a low interest rate then hold in abeyance(sp) the deficit, until the market corrects itself, they are not going to stop squat - that is the solution but there is no one in Congress in our situations to figure it out right. They are all wealthy people being paid by our tax money and no threat of losing their job. Take note, the crisis is going to continue unless we all write to our elected officials and tell them to correct it for us not the banks. The banks can take the write off of the value vs mortgage easier than a foreclosure, they will lose less. So stop blogging and complaining and writing mean things and write to our Congressman and Senators. Tell them to do the right thing for all involved.


    Tony wrote on February 01, 2009 07:37 PM: Tax cuts don't do squat if you don't have a job like almost 10% of the folks out there.


    Harry wrote on February 01, 2009 06:58 PM: The real way to do this is get rid of all the stupid "add on projects" that are slammed into the stimulas bill. Take the $1trillion and give each family $100k...they will do the following: 1) put it in the bank account (that will fix the banks), 2) payoff all their bills (that will go back to business and free up the family cash flow - money back to banks and business wil lstay alive, 3) Pay off a part of their mortgage - money back to the banks and get mortgages in balance....see the picture here?

    Geez, this isnt brain surgery here,,,get the money to the people - not the special project all the "yahoo's" in Washington want oh and thats before they talk about us citizens and our problems...


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