HUD slams Democrats' $300B FHA expansion plan

FHA modernization must come first, HUD says

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The Bush administration has come out against a proposal by House Democrats for a massive expansion of FHA loan guarantee programs that’s aimed at helping refinance up to 2 million loans in cases where lenders agree to principal write-downs.

"An attempt to shift costs to taxpayers would constitute a bailout," Acting Housing Secretary Roy A. Bernardi said in a letter to lawmakers today addressing legislation introduced by Rep. Barney Frank, D-Mass.