Bush administration beats Dems to the punch on FHA expansion

Democrats continue push for more ambitious foreclosure prevention plan

The Bush administration today announced it will expand the FHASecure loan guarantee program to allow an additional 500,000 families to refinance into more affordable mortgages, as Democrats kicked off a two-day hearing on a more ambitious, $300 billion FHA expansion plan.

The Bush administration’s plan to expand the FHASecure loan refinancing program would give the Federal Housing Administration the ability to insure loans made to refinance borrowers out of loans in which they have missed a few payments or received principal write-downs from lenders.