Last Friday, the U.S. Dept. of the Treasury submitted a $700 billion proposal to purchase troubled residential and commercial mortgage-related assets, including mortgage-backed securities and loans. The goal of the plan is to promote stability in the U.S. financial markets. On Tuesday, Congress weighed in on the initial proposal, and members of both parties asked for several additions or amendments, including provisions to help homeowners avoid foreclosure; greater oversight of the plan; and a limit on compensation to executives of the troubled firms that receive assistance.
Today, U.S. Treasury Secretary Paulson, Federal Reserve Chairman Ben Bernake, and members of Congress testified before the Housing Financial Services Committee. Legislators today proposed adding an imposed tax on Wall Street firms and banks to help pay the cost of the program, and lessen the burden to taxpayers.
As "Newsline" went to press, President Bush announced that tonight at 9 p.m. EST he will address Americans directly about the financial crisis and possible implications if the plan is not passed.
NAR President Richard F. Gaylord recently announced the creation of a Presidential Advisory Group to address this critical issue. Five California REALTORS® were appointed to the 20-person Presidential Advisory Group.
According to C.A.R.'s sources, Congress may work through the weekend and into next week to finalize and pass legislation. C.A.R.'s and NAR's Leadership Teams are in close contact with elected officials and other key leaders in Washington to ensure that interests of the real estate industry are represented.
