House Republicans floated their own plan to help boost the housing market with the use of tax credits while also cracking down more on mortgage fraud (which is still very much a problem). From a Washington Post story:
Under the proposal, borrowers refinancing their mortgage would be eligible for $5,000 to help cover closing costs or to reduce their principal balance. The plan also revives a $15,000 home buyer tax credit proposal that Republicans pushed last year. This time, the proposal would require the borrower to have at least a 5 percent down payment. Both programs would expire in July 2010...
The Republican proposal also calls for providing additional resources to law enforcement agencies, including the FBI, to investigate and prosecute mortgage fraud. According to a recent study by the Mortgage Asset Research Institute, mortgage fraud jumped by 26 percent last year compared with 2007 even though fewer loans were issued nationally.
Republicans have not attached a price tag to their proposal and it is unclear whether they could gather enough support from Democrats to move the measure ahead.
