As Congress continued to mull over the proposed $700B relief plan on Tuesday, FDIC Chairwoman Sheila Blair expressed the hope that the acquisition of troubled mortgages “will be a feature of that.” So many recent failures in the lending sector has left her and others concerned for the state of the entire housing market. Blair suggested buying delinquent mortgages, and “removing them from the overall pool of mortgages”. FHFA director James Lockhart offered another possible solution; less stringent lending standards. By helping more potential homebuyers qualify for loans, he believes that the tumultuous conditions of the mortgage market could be calmed.
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