Thanks for the questions. They let me know what information to zero in on when I research and write the next post. I’m going to do a new post on defining “first time” homebuyers and one on the bill once it gets through and we have a final version (including provisions for non-first-timers next week).

Thanks again and have a wonderful weekend!

According to The Washington Post, the veto threat stems from the fact that until now taxpayers have been insulated from the consequences when Fannie Mae, Freddie Mac, or FHA loans go sideways. Mortgage insurance had in the past been sufficient to cover losses, and one foreclosure in a neighborhood didn’t lead to others.

The new financing options created by the bill could potentially be footed by taxpayers if loans get refinanced out of private lending and into government-backed mortgages like FHA programs–hence the opposition of the president. However, it appears that the costs of the housing downturn are being born by taxpayers now, in blighted neighborhoods, in unemployment, in higher lending costs and decreased accessibility to funding, in uncertainty and in distrust. So someone is going to pay somehow. The question is who and when.