President Obama's New Plan for Struggling Homeowners

Friday, March 26, 2010

The Obama administration is set to propose a broad package of initiatives to help millions of strained homeowners refinance with new government-backed mortgages with lower payments. The move is meant to help fix the current foreclosure crisis.

    The plan also features special provisions for unemployed Americans as it could temporarily cut their monthly mortgage payments. Finance reporter for The New York Times, Louise Story, explains how the new package has potential to make a difference in the lives of many homeowners.

    Guests:

    Louise Story

    Hosted by:

    Lynn Sherr

    Comments [3]

    Charles

    Rick in Taxachusetts has it exactly right. I'd add -- one of the biggest drivers of the mortgage bubble was the federal Frankenstein otherwise known as Fannie Mae and Freddie Mac.

    You remember Fannie and Freddie; they were the two hybrid private-public mortgage lenders that Barney Frank told us would never go broke. Right before both of them went, spectacularly, broke. Still don't remember? They were the agencies that privatized profit during the housing boom, lining the pockets of Democrat sinecures like Franklin Raines and Jamie Gorelick with millions of dollars (as private profits) with much of the risk backed up by We the Taxpayers.

    And now, Obama proposes to have us ride FHA back into that swamp? Is there no adult supervision for this Administration?

    Mar. 26 2010 01:08 PM
    John S. from Florida

    "unfair to the neighbors that have accepted that houses fluctuate in price and that it is the norm and not the exception"

    I would agree, except to the extent that a lot of those homeowners cashed in their "equity" when the bubble inflated and are now saddled with second mortgages or HELOCs that puts them in almost as bad of a situation.

    There are very few homeowners - new or old - who are exempt from the excesses of the past decade.

    Mar. 26 2010 12:46 PM
    Rick Evans from Taxachusetts

    All three of you Louise Story, John Hockenberry and Lynn Sherr totally missed the point regarding what's problematic about helping underwater mortgagees. Whether the person has fallen behind or kept up with their payments the person is underwater because they paid too much for a house or the market turned down.

    All of you focused on whether it's unfair to help an underwater mortgagee who has fallen behind on her payments while giving no help to her neighbor who is also underwater but is up to date paying her mortgage.

    Helping either would be unfair to the neighbors that have accepted that houses fluctuate in price and that it is the norm and not the exception to be underwater at some time when paying of mortgage debt.

    Mar. 26 2010 12:23 PM

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