Study: Mortgage Bailout Proposals Inequitable

Congressional policy proposals targeting the subprime mortgage crisis do not distribute the costs and benefits equitably, according to a study released by the Washington-based FreedomWorks Foundation. The study, conducted by Todd Sinai, associate professor of real estate at the University of Pennsylvania's Wharton School, found that the proposals "inappropriately reward people who made riskier decisions over those who made prudent decisions" and benefit high-income earners at the expense of others. Titled "The Inequity of Subprime Mortgage Relief Programs," the study also said that proposals to increase the conforming loan limit raise questions of fairness and boost the risk borne by Fannie Mae and Freddie Mac. The foundation can be found on the Web at http://www.freedomworks.org.