Since taking office the Obama Administration has become forced to confront a historic economic collapse caused by years of neglect, abuse, and outright fraud in our financial markets, … part of the answer is a strategy is to help stem the foreclosure crisis after the housing bubble burst … “We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes,” President Obama stated yesterday in Denver …
Today I watched the President as he spoke about his $75 billion plan from Mesa, Arizona … here’s are snippets of what he had to say … “the crisis strikes at the heart of the middle class” … “this crisis is vast but begins one house, one family at a time” … “nearly 6 million homes in foreclosure or at risk of foreclosure” … “home prices across the country have fallen over 25%” … “in the end all of us are paying the price for this crisis” … “stabilize, repair, and reform our banking system” … “it will not help speculators” … “this plan could help stop the slide by up to $6,000 per home” ….
1. refinance at a lower rate through FANNIE and FREDDY MAC … removes restriction on 80% rule on mortgages they currently have on the books
2. work with borrowers and lenders to reveal the true terms and conditions and refinance guidelines and reduce costs
3. work to assure new loan availability and bolster the mortgage market
4. reforms to help families … award $ for new community initiatives