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Title: Mortgage Aid for Unemployed Expanded (Obama pays your rent for 1 year)
Source:
WSJ Blogs
URL Source: http://blogs.wsj.com/developments/2 ... e-aid-for-unemployed-expanded/
Published: Jul 7, 2011
Author: Nick Timiraos
Post Date: 2011-07-07 22:33:31 by Hondo68
Keywords: Affordable Modification Progra, push the mortgage industr, slow economic recovery
Views: 1894
Comments: 3
The Obama administration will require mortgage companies to extend more generous mortgage relief to help certain unemployed borrowers from losing their homes to foreclosure. Under policy changes announced Thursday, mortgage companies that collect payments on loans backed by the Federal Housing Administration will be required to offer 12 months of forbearance for qualified unemployed borrowers. Currently, out-of-work borrowers with these loans can receive a minimum of four months without mortgage payments. Firms that participate in the Obama administration’s Home Affordable Modification Program will also be pressed to offer up to 12 months of forbearance for unemployed borrowers, though that effort could be stymied by regulatory or contractual rules. Housing officials said the changes could help tens of thousands of borrowers. Housing Secretary Shaun Donovan said he hoped it would “push the mortgage industry” to amend their offerings. The foreclosure crisis was initially driven by adjustable-rate mortgages that were resetting to sharply higher payments, but over the past three years, far more homeowners have faced foreclosure because they have lost their jobs or seen their income fall. Many of those borrowers can’t easily sell their homes if they get in trouble because they owe more than the properties are now worth. Officials said the change was prompted by a slow economic recovery that has seen longer stretches of unemployment than in past downturns. “We’ve been looking for ways we can go farther to help borrowers,” said Mr. Donovan. Around 3,500 borrowers with FHA-backed mortgages fall behind on their payments every month due to unemployment, housing officials said, and around 17,000 borrowers last year had been offered some type of forbearance. HAMP offers a three-month break in loan payments for unemployed borrowers and has helped around 10,000 homeowners since the program began last August. Borrowers who receive loan forbearance, where principal and interest payments are temporarily suspended, will ultimately have to pay back the past-due balance after the forbearance period ends. At a White House town hall event on Wednesday, President Barack Obama conceded that housing has become the “most stubborn” economic problem facing policy makers. “We've had to revamp our housing program several times to try to help people stay in their homes and try to start lifting home values up," he said. The program won’t apply to loans backed by housing-finance giants Fannie Mae and Freddie Mac, which are under government control but answer to a separate, independent regulator. The firms offer their own forbearance programs and own or guarantee nearly half of all U.S. home loans. The FHA, by contrast, backs less than 10% of all outstanding mortgages. The Obama administration has separately committed $7.6 billion in funds from the $700 billion Troubled Asset Relief Program to target housing relief in 18 of the “hardest hit” states. Most states have used some of that money to provide bridge loans so that unemployed borrowers can make mortgage payments. A separate program, funded with $1 billion through the Dodd-Frank financial-overhaul law, allows unemployed borrowers in 27 other states to receive interest-free loans to help make mortgage payments worth up to $50,000 for up to two years. Applications for that program are due July 22.
Housing and Urban Development Secretary Shaun Donovan
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#1. To: hondo68 (#0)
Honda prefers that CEOs get it instead, so someday they might actually get enough to create those jobs they keep promising and give Honda, honest employment.
#2. To: mininggold (#1)
In the mean time, more foreclosures mean that our homes continue to loose value.
mininggook ignores the article and takes cheaps shots to deflect attention from failure.
Top • Page Up • Full Thread • Page Down • Bottom/LatestMortgage Aid for Unemployed Expanded (Obama pays your rent for 1 year)
Replies to Comment # 1. Honda prefers that CEOs get it instead, so someday they might actually get enough to create those jobs they keep promising and give Honda, honest employment.
#3. To: mininggold (#1)
Honda prefers that CEOs get it instead, so someday they might actually get enough to create those jobs they keep promising and give Honda, honest employment.
End Trace Mode for Comment # 1.
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