A Senate G.O.P. plan to address the national housing crisis has attracted fierce criticism from conservatives, according to the Washington newspaper The Hill.
Sen. Kit Bond is one of the prime sponsors of the plain under fire. One of Bond's bailout provisions would give $15,000 in tax credits for the purchase of homes in or near foreclosure.
Conservative policy groups call that tactic irresponsible and even "stupid."
“The subsidy rewards those who have been the most irresponsible,” stated the Heritage Foundation critique. “It would benefit homeowners at any income level who either irresponsibly borrowed all of their home equity or who took out a loan they could not repay but hoped to profit from by reselling the property in a rising market.”
The author of the foundation's analysis also said reducing the minimum down payment from 3 percent to 1.5 percent was “stupid” because low down payments are linked to higher rates of default.