Senate to Expand Mortgage Credit to Subprime Borrowers

The Senate apparently isn't happy with the number of subprime borrowers to default on their mortgages and can get a free bailout, courtesy of us taxpayers: a new bill will cure that.

The Senate bill would expand eligibility. For example, the program currently bans participants who intentionally defaulted on the mortgage or other substantial debt. The Senate bill would narrow that prohibition to defaults within the last five years.

So now it appears that those who purposely default will also be eligible. How nice. Get ready folks - in the near future we will be bailing out the FHA to the tune of several hundred billion dollars to pay for your neighbors' mortgages.

PS - the bill also spends $5 million to study the cause of the financial crisis. Perhaps if they did that first, they wouldn't be giving out all this additional credit to those who don't deserve it.