Bush: Housing bills should help, not hurt

NEW YORK, March 14 (UPI) -- Programs helping responsible U.S. homeowners "through this rough patch" are favored over ones that burden them, President George Bush said Friday.

Legislation that would allow bankruptcy judges to reduce mortgage debt, allow state and local government to buy abandoned and foreclosed homes or artificially prop up home prices would "rattle the credit markets," Bush said in a speech at the Economic Club of New York.

"The market is in the process of correcting itself. Markets must have time to correct," he said. "Delaying that correction would only prolong the problem, and so that's why we oppose those proposals."

He said the wants homeowners "who have made responsible buying decisions" to stay in their homes through three programs that help people refinance mortgages.

In addition, Housing and Urban Development officials seek to require plain-language in mortgage contracts, he said.

"We have an active plan to get through this rough patch," Bush said.

Other changes to help the housing market include congressional action to reform Fannie Mae and Freddie Mac lending programs, the FHA and to allow states to issue bonds for refinancing mortgages.