Congress May Pull Plug on Three Programs Designed To Save Housing

02-24-2011 • CNBC.com

The House of Financial Services Committee has scheduled a vote next week on legislation that would shut down the Obama administration's key housing rescue programs. The panel's Republican leadership said it will consider a bill to terminate the Home Affordable Modification Program, which it said has failed to help a sufficient number of distressed homeowners to justify its cost. It also will vote on bills to shut down a Federal Housing Administration refinancing program and a program to stabilize neighborhoods suffering from heavy foreclosures. "In an era of record-breaking deficits, it's time to pull the plug on these programs that are actually doing more harm than good for struggling homeowners," Financial Services Committee Chairman Spencer Bachus said in a statement.