AP US government officials have discussed selling home mortgage debt to people making more than $1 million per year for a fraction of the cost, and possibly even below that level, as a means to ease a housing crisis that is already making many Americans poorer.
The United States is one of the few developed nations with no national housing plan and little national policy to provide assistance for the nation’s poorest residents.
That’s due in part to Congress’ refusal to pass a federal plan for homeownership, despite warnings that such a plan would put millions of Americans at risk.
But a senior US official told The Associated Press the U.S. government is seriously considering selling debt for as little as $1.00 to $500,000 a year.
The official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity, said such a sale could be in the works as early as this summer.
The government would use the proceeds to help pay down a $4 trillion debt, and the government would also sell the debt for income-driven tax credits and tax refunds, the official said.
The official said such an arrangement would likely involve a third party.
The senior official spoke on the condition of an anonymity agreement.
The proposal has not been approved by Congress and has been opposed by many in Congress, many of whom have argued the idea is unworkable and would have unintended consequences.
The government would not comment further.