Bush stresses flexibility, not bailout of mortgage crisis

President George W. Bush provided some hope Friday to Long Islanders marred in the subprime mortgage crisis, but stressed the government would not offer bailouts. The president urged Congress to pass

News 12 Staff

Aug 31, 2007, 11:00 PM

Updated 6,168 days ago

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President George W. Bush provided some hope Friday to Long Islanders marred in the subprime mortgage crisis, but stressed the government would not offer bailouts.
The president urged Congress to pass legislation allowing the Federal Housing Administration more flexibility with subprime mortgage holders with good credit. A tax code amendment will also be in the works, he said.
Bush emphasized his plan does not equate to a bailout.
"The federal bailout of lenders would only encourage a recurrence of the problem," he said. "It is not the government's job to bail out speculators or those who made the decision to buy a home they knew they could never afford."
Peter Elkowitz of the Long Island Housing Partnership was encouraged, saying, "I think it's important he recognizes it's an issue."
Many homeowners are in tough situations either because they weren't financially capable of affording a mortgage or because of predatory lending practices, Elkowitz said.
With foreclosures occurring daily on Long Island, he fears the plans won't be implemented quickly enough.
"Every day we wait, more and more people are losing their homes."
Related Information: Long Island Housing Partnership Inc.


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