Thursday, January 31, 2008

Bond Cap Increases, Refinancing Discussion Gearing Up.

The WSJ reported yesterday HERE that NY Senator Chuck Schumer is advancing a proposal to lift state tax exempt housing bond caps by $10 billion in 2008 and 2009 and by another $3 billion in 2010. Eligible uses of bond proceeds would include single family and multifamily refinancings.

Another more modest plan from Oregon Senator Smith and Mass. Senator Kerry (the long couple?) would provide a temporary cap increase of $15 Billion over three years and may include only single family refinancings.

Blog readers may recall that Senator Clinton first raised the idea of expanding single family bonds to include refinancings last October. My earlier blog post on that subject is HERE.

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