George W Bush has today announced a range of reforms to help ease the sub-prime mortgage crisis in an attempt to calm turbulent world markets.
President Bush has said he will ask Congress to support plans to allow the Federal Housing Association, the Government-backed mortgage insurer, to guarantee loans for those who are more than 90 days in arrears on their mortgage.
In addition, Bush says he will ask Congress to change a key provision of the Federal Tax Code so it does not punish families who are forced to sell their homes for less than their mortgage is worth.
The President also called for strong enforcement of laws aimed at preventing irresponsible lending, to ensure such a crisis did not happen again.
He says he will push for a state-based mortgage broker registration system, additional support for consumers and more regulation to strengthen mortgage lending standards.
The President's announcement comes after the head of the US Federal Reserve, Ben Bernanke, hinted earlier today the Fed may cut interest rates to help ease the current market turmoil.
Bernanke says: "The Fed stands ready to take additional actions as needed to provide liquidity and promote the orderly functioning of the markets."
The latest announcements will be of some comfort to investors and homeowners struggling in the current market crisis, which has already seen major US lenders file bankruptcy and a number of UK lenders withdraw their sub-prime products.
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Effective from 9 December 2019
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