Castor defends Housing Bill listen07/29/08 Mitch E. Perry
WMNF Drive-Time News Tuesday | Listen to this entire show:
President George Bush is scheduled to soon sign the massive housing bill that will help some homeowners get cheaper loans. It also includes a tax break of as much as $7,500 for first-time homebuyers, as well as help for troubled mortgage finance providers Fannie Mae and Freddie Mac.
Support for the two mortgage giants has led to opposition, mostly among Republicans.
Economist Dean Baker says that though it was necessary to honor the debt of Fannie and Freddie, he says the legislation should have addressed executive compensation.
Last year, Richard Syron, CEO of Freddie Mac, made more than $19 million in compensation, despite the fact that his company was in trouble.
Baker also says that only about 260,000 homeowners will hold on to their homes as a result of this program, while there will probably 2 to 3 million more foreclosures over the next couple of years.
Hillsborough Area Democratic Congresswoman Kathy Castor, who supported the legislation, admits that more could have been done on the executive compensation angle.