New Housing Bailout on the Way

While many taxpayers and federal officials have called for the government to wind down its spending on its various federal bailout programs, the Obama administration has just announced a new housing bailout to help fix the housing market. The plan would be geared to assist state and local housing finance agencies.

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These agencies help first-time and lower-income homebuyers to secure a mortgage and also help to develop or renovate rental properties. Obama administration officials have not yet placed a price tag on the program but have also assured that none of the money spent on the program will come from the taxpayer’s pockets.

Treasury Secretary Tim Geithner has stated that the new initiative is essential to keep lower-income families in homes, whether they choose to rent properties or to pursue home ownership. The housing agencies, which are located in all 50 states, will be able to lend to hundreds of thousands of families, according to federal officials.