Details of the Obama administration’s plans to address the housing crisis are beginning to be released. I’ll be carefully reviewing this info and will share with you anything that I think is particularly meaningful.
A government website has been set up where you can keep track of new information as it’s released: www.financialstability.gov
Here are links to details on the Homeowner Affordability and Stability Plan. This plan is designed to provide aid via refinancing assistance, consistent loan modification guidelines, and further strengthening of fannie/freddie to support low mortgage rates.
(I will say that at first glance, the actual amounts being proposed for direct homeowner assistance do not appear to be meaningful. Judge for youself by at least checking out the Executive Summary below).
Homeowner Affordability and Stability Plan
Some other highlights that have been released in addition to the above:
-Public/Private Investment Fund to be started with $500Billion to be used to attract private capital to the secondary markets for real estate related assets. (This is important because if successful would help establish a price for mortgage assets that are currently unsalable and thus destroying the balance sheets of financial institutions.)
-$1 TRILLION Consumer and Business Lending Initiative to “kickstart” small business lending, student loans, consumer loans, auto finance, and commercial mortgages. This is to include increasing SBA loan guarantees and expediting the process.
As more details are released, I’ll continue to share them with you.