Terry McDonald

An Alternative Bailout Proposal

Simple fix for problem
If they really wanted to fix the problem they would simply expand the FHA insurance to cover all single-family mortgages funded before Dec. 31, 2007. Then force the banks to renegotiate the sub prime mortgages to a fixed rate 3 to 4 % 20 years mortgages, which would be 2% over Prime and 85 to 90% of the homeowners, would be able to afford. This would stabilize the mortgage market; reduce the liability to the taxpayers, which would beneficial to both Wall Street and Main Street. But this is just to simple therefore it will never happen.