Obama Details Rescue Plan for Homeowners
With almost one in ten houses either delinquent or in foreclosure, President Obama unveiled a more ambitious plan than expected yesterday that could end up helping as many as nine million Americans. The $75 billion portion of the plan directed at homeowners has two basic goals: 1) To help the roughly five million homeowners who…
With almost one in ten houses either delinquent or in foreclosure, President Obama unveiled a more ambitious plan than expected yesterday that could end up helping as many as nine million Americans. The $75 billion portion of the plan directed at homeowners has two basic goals: 1) To help the roughly five million homeowners who are current on payments but facing high interest rates and unable to refinance because the value of their homes has deteriorated; 2) To incentivize lenders to modify the mortgages of roughly four million homeowners on the verge of losing their homes. In addition, the Obama administration will pump another $200 billion into Fannie Mae and Freddie to increase the general availability of mortgages. The plan also aims to lower consumers’ debt-to-equity ratios overall. This plan will not save every home, but it will give millions of families resigned to financial ruin a chance to rebuild, Mr. Obama told a crowd here, in one of the communities hardest hit by the housing crisis. It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. And by bringing down the foreclosure rate, it will help to shore up housing prices for everyone. As The Times reminds us, modifying mortgages doesn’t always work.
$275 Billion Plan Seeks to Address Crisis in Housing [NY Times]
O’s $75 Billion Housing Bet [NY Post]
President Obama Unveils $75 Billion Plan [NY Daily News]
i do like the idea of helping homeowners by lowering monthly payment to keep them in their homes rather than foreclose. i am concerned with the phrase ‘pump’ b/c like benson said, this seems to be that loosening of credit that helped make this mess, or am i misinterrupting that?
The poor have disproportionately high credit card debt and interest rates. Will we be seeing something to reduce those interest rates?
i doubled majored in psychology and visual arts.
*r*
yeah, I am not 100% sold on the “Stimulus Plan” or all the pumping of money into all the different housing sectors. The bottom line is aren’t we just rewarding bad behavior, or is this because this mess is just too widespread that we have to do something?
That Frontline/PBS piece on the economic meltdown was fascinating.
Also interesting was that piece in the NY Times about UBS cooperating to reveal the names of wealthy Americans who had been stashing billions in Swiss Bank Accounts evading the IRS
Looks like the Gov’t is really trying to pick up cash where they can find it
What was your major?
of course it’s lunacy. and i want student loan aid too. the government (and my university) actually DID trick me into thinking i needed to take out more loans that i really did (im not being snarky here) im being serious. i didnt need to take out that much in loans. i didnt need rebate and refund checks from my loans at the end of every semester. but i was poor, and 18, and didnt know any better! grrrr. if there is any kind of victim it’s me, back then, taking out loans for a useless education i get no benefit from anyway.
*r*
Rob, I assume you also think Applebee’s steaks are the same as those served at Peter Lugers.
BRG;
I want royalties every time that you use the word “schlock”!!
Am I the only one who thinks that Obama’s housing plan is complete lunacy? I was particularly taken aback by this line: “In addition, the Obama administration will pump another $200 billion into Fannie Mae and Freddie to increase the general availability of mortgages.” The use of the word “pump” is telling. In other words, let try to re-inflate the housing bubble which got us in this mess to begin with!!!
Perhaps I’m just too drunk with Sake. Tonight I went to dinner in a 200 year-old restaurant in Tokyo. It was great -particularly the sake. I’m going home tomorrow, and I’m looking forward to it.
I’d be interested to have a mortgage expert chime in on how this action will affect Mortgage rates available to those with healthy credit scores looking to refinace. Up until last week, I’ve seen quotes at 4.875 – 5.15 on 30yr non-jumbo refinance. Will this action push rates down further? I know LTV and credit scores much more important now, but just interested in mortgage rate trends.