Mortgage Relief
On May 8, President Obama announced a new plan intended to build on previous Administration efforts to help struggling homeowners by making it easier for them to refinance mortgages. The President’s proposal is aimed at approximately 11 million homeowners whose loans are backed by Fannie Mae and Freddie Mac and approximately 3.5 million whose loans are privately held. For those with privately held loans, the President has proposed allowing the Federal Housing Administration (FHA) to refinance their mortgages through a program that would be paid for by a fee charged to large banks. The FHA would use the fee to insure…
