Incredibly, Congress now plans to give the FHA expanded power to underwrite even bigger loans, so it can gamble even more heavily at taxpayers’ expense. It also plans to buy up failing mortgage loans made by a mortgage lender that made sweetheart loans to liberal Senators like Chris Dodd, the mortgage bailout bill’s Senate sponsor.
Even though the mortgage bailout bill would further destabilize the housing market by encouraging borrowers to default, and most of the public opposes mortgage bailouts, Congressional leaders favor them, since mortgage bailout bills contain pork for politically-connected left-wing special interest groups. The mortgage bailout bill also pointlessly undermines privacy rights, requiring that people in the mortgage industry be fingerprinted even if they have never been suspected of any crime or wrongdoing.