President Barack Obama is aiming mortgage relief at members of the military as well as homeowners with government-insured loans, the administration's latest efforts to address a persistent housing crisis.
In his first full news conference of the year Tuesday, Obama was to announce plans to let borrowers with mortgages insured by the Federal Housing Administration refinance at lower rates, saving the average homeowner more than $1,000 a year. Obama also was detailing an agreement with major lenders to compensate service members and veterans who were wrongfully foreclosed upon or denied lower interest rates.
A senior administration official described Obama's proposals to The Associated Press on the condition of anonymity to discuss them ahead of the announcement.
Obama is holding the news conference in the midst of a modestly improving economy. But international challenges as well as a stubbornly depressed housing market remain threats to the current recovery and to his presidency.
as long as these foreclosures continue. Empty houses everywhere. If the lenders worked out new agreements with the homeowners allowing them to stay and get back on track, this would not have gone down so far. Now there are so many homes just sitting that they are selling for less than half of their former value.