The U.S. Treasury is contemplating a new program that would provide as much as $15 billion to purchase tax-exempt mortgage bonds issued by states over the next three years.
The program would be beneficial for low-income home buyers who have long depended on state programs for low-interest mortgages. States have been unable to offer these mortgages in the last year because they haven't been able to sell mortgage bonds. This program would solve that, according to the National Council of State Housing Agencies.
Details are expected to be announced on Sept. 30.
Source: Bloomberg, Dawn Kopecki (09/28/2009)