White House Unveils Foreclosure Aid
- By:
- MortgageLoan.com | April 11, 2008
As Senate toiled away drawing up a bipartisan plan designed to stave off the effects of the credit crisis, the Bush administration on Wednesday announced plans to help homeowners fend off foreclosure.
The plan is designed to rescue 100,000 homeowners at risk of foreclosure by relaxing eligibility standards for government backed loans as well as encouraging lenders to forego a portion of their debt.
The proposal outlines plans to help subprime borrowers who have missed several mortgage payments and cannot afford their loans to be eligible for assistance from the Federal Housing Administration (FHA).
The FHA provides mortgage insurance to borrowers through a network of private lenders. The agency charges borrowers insurance premiums and the premiums provide the FHA with reserves to cover defaults.
The move has been heavily criticized by consumer groups, who claim it will do little to slow an industry in meltdown mode as over 1.5 million households were thrown into foreclosure last year. Key Democrats on the other hand have welcomed the move by claiming the White House is acknowledging that more aggressive government action is needed to help the hardest hit borrowers who owe banks more than their homes are worth as a result of plunging prices.
The Bush administration has already helped about 130,000 home owners refinance their subprime loans under the FHA Secure program. By the end of the year, they hope to have helped 500,000 homeowners avoid foreclosure.
Bankruptcy Reform Back on the Table
- By:
- Bill Rice - MortgageLoan.com | November 21, 2008
One of the earliest ideas for helping homeowners facing mounting mortgage debt and potential foreclosure on their home was to reform bankruptcy laws. The concept is now officially back on the table, introduced into the Congressional lame-duck session by Senator Richard Durbin (D-IL).
TARP is Closed for Relief Until Further Notice
- By:
- Bill Rice - MortgageLoan.com | November 20, 2008
Remember what a crisis the $700 billion mortgage market bailout was--the very existence of the American financial order hung in the balance.
Fixing the Housing Market, Lots of Ideas...Any Answers?
- By:
- Bill Rice - MortgageLoan.com | November 19, 2008
Almost a year into the dawning of the housing crisis (many chronologist are setting that around the January 2008 crumbling of Countrywide) ideas continue to flow, but few seem to be the answer. In fact, this seems to be the growing consensus--there is no silver bullet.
G-20 Lots of Motion, Will There Be Action?
- By:
- Bill Rice - MortgageLoan.com | November 18, 2008
The 20 most powerful industrial nations, and now the caretakers of an unprecedented global financial crisis, assembled in Washington DC over the weekend. Their mandate was broad and daunting--stabilize world markets.
FDIC Challenges Treasury with New Loan Modification Proposal
- By:
- Bill Rice - MortgageLoan.com | November 17, 2008
On the heels of the Treasury and Federal Housing Finance Agency's (FHFA) loan modification plan for Fannie Mae and Freddie Mac, the FDIC releases their own proposal. In this unprecedented, unilateral, and aggressive move by a Federal agency the FDIC is essential fighting a very public political battle directly with the Treasury and the current Administration.
Mortgage Rates Drop for Second Straight Week
- By:
- Bill Rice - MortgageLoan.com | November 14, 2008
Another week of dismal economic data have again pushed down mortgage rates. Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.14 percent, down from 6.20 percent last week. This demonstrates a steep decline from 6.46 percent two weeks prior.
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