Obama’s plan to help 3.5 mn homeowners (Lead)February 2nd, 2012 - 3:34 pm ICT by IANS
Washington, Feb 2 (IANS) In the midst of a heating election campaign, President Barack Obama plans to help with good credit about 3.5 million Americans who are unable to refinance at historically low rates because their homes are worth less than their mortgages.
He argued that this key segment of struggling homeowners making monthly payments on underwater mortgages couldn’t afford to let the housing market bottom out, as many Republicans, including leading presidential candidate Mitt Romney, have advocated.
“This plan . will not help the neighbours down the street who bought a house they couldn’t afford, and then walked away and left a foreclosed home behind,” Obama said.
“It’s not designed for those who’ve acted irresponsibly, but it can help those who’ve acted responsibly.”
The proposal essential extends a plan announced last to help as many as 11 million underwater homeowners whose loans were backed or owned by Fannie Mae, Freddie Mac or the Federal Housing Administration, to the remaining underwater homeowners, whose loans are owned by banks or investors.
But the refinancing plan is strongly opposed by many congressional Republicans and faces an uphill climb in an election year.
In October, Romney told the Las Vegas Review-Journal that the housing market needed to “hit the bottom” before it could recover, and he has since talked about the need for foreclosures to run their course.
“It is wrong for anybody to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom,” Obama told a crowd at Falls Church, a Washington area suburb, alluding to Romney’s comments. “I refuse to accept that, and so do the American people.”
(Arun Kumar can be contacted at firstname.lastname@example.org)
- Freddie Mac posts huge loss - Nov 04, 2011
- Obama presents mortgage refinancing plan - Feb 02, 2012
- Obama launches plan to help families facing foreclosure - Oct 26, 2011
- US sues financial firms over mortgage losses - Sep 03, 2011
- Fannie Mac seeks $7.8 bn aid from US government - Nov 09, 2011
- Fannie Mae Foreclosures on Hold for Some, but Not for All - Oct 02, 2010
- Fannie Mae, Freddie Mac prevented two mn foreclosures: Report - Dec 07, 2011
- Obama signs law to prevent another recesssion (Lead) - Jul 22, 2010
- Fannie Mae rental program - Nov 06, 2009
- Tips for First Time Home Buyers - Oct 19, 2010
- US mortgage applications down despite record low rates - Apr 26, 2012
- US launches mortgage plan to stem housing crisis - Mar 05, 2009
- Fannie Mae rental program 'Deed for Lease' - Nov 08, 2009
- Fox News host Glenn Beck claims Fannie Mea is a "slush fund" - May 14, 2010
- US seeks to suspend executives' bonuses at mortgage giants - Nov 16, 2011
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