Government unveils new mortgage help

[sabra]

Source: MSNBC/AP

Administration says new program would help support low mortgage rates

WASHINGTON - The Obama administration is unveiling a new program to provide support to state and local housing agencies to provide help to thousands of home buyers and renters.

The administration said the new program would help to support low mortgage rates and expand resources for low and middle income borrowers who want to buy or rent a home.

The program will feature two parts — a new bond purchase program to support new lending by housing finance agencies and a temporary credit and liquidity program to improve access by housing agencies to credit sources for their existing bonds.

The new program will operate under a law that Congress passed in 2008 to bolster the housing industry, which has been battered by the worst slump in decades, a downturn that saw home sales and home prices plunge and mortgage defaults soar to record levels.

Read more: http://www.msnbc.msn.com/id/33382851/ns/business-real_estate/

[Uncle Joe]

1. Kicked and recommended.

Thanks for the thread, sabra.

[mzteris]

2. and if you can't qualify

for a "new mortgage rate" because you're STILL unemployed??

then what?

[Robb]

3. Wait, what??

"Treasury Department officials said any losses from loan defaults will be entirely covered by fees paid by the state agencies."

On what planet? 100,000-200,000 borrowers per year use these state agencies, according to the article. 1 in 10 is in default right now across the country ... so these state agencies pay a fee equal to 10% of each loan they make back to Treasury? :wtf:

[Big_Mike]

4. Isn't something very, very, very much like this

how the whole meltdown started?

I love the idea of helping people get into homes they can afford, either to rent or to own. However, there is about 100 years of historical records of just how much help can be provided before it is all too much.

It does not help to get someone into too much house. It only causes problems.

[No Elephants]

5. We cannot base an economy indefinitely on the feeling of well-being and wealth people

get from "owning" a heavily mortgaged home, or on "consumer confidence." The prior administration proved that beyond a shadow of a doubt.

We need an end to never-ending, wars that are far too costly in blood and treasure and we need jobs.