The NY Post has a scathing article about Chris Shays and his efforts to deal with the mortgage crisis.
The riskiest type of government-backed mortgages could soon return to haunt the country.
Rep. Christopher Shays, the embattled lawmaker in a close race for his seat in tony Fairfield County, Conn., is quietly pushing to overturn a recently implemented White House ban on Federal Housing Administration mortgages made with seller-financed down payments to buyers who don't have the cash for a down payment.
The Bush Administration, which barred these no-money-down mortgages as of Oct. 1 because they go to foreclosure three times as often as FHA mortgages in which the buyer puts a down payment on the house, said most of the $4.6 billion lost on FHA loans came from the seller-financed down payment assistance, or SFDPA, loans.
Connecting the dots paints a damning picture against Shays:
However, Shays' support of 6694 has raised a few eyebrows in his district.
For starters, the National Association of Realtors, whose members stand to benefit greatly from the commissions they will earn on the SFDPA mortgages, had its political action committee pump a staggering $804,371.69 into Shays' campaign so far this year for direct mailings, TV time and other items, federal filings show.
The first NAR-PAC pro-Shays TV spot aired the same week he helped get his Financial Services Committee to approve 6694.
At the same time, Shays' brother, Tony, is a real-estate broker whose Stamford firm stands to benefit from the reintroduction of the SFDPA program, as it caters to low-income buyers.
While not conclusive this certainly looks bad. And for Chris Shays, coming little more than a week from the election, it could be the final stake in his heart.