Mortgage relief to be expanded: Bush
Monday • March 31, 2008
President George W Bush said the government will expand efforts to help homeowners avoid foreclosure as Democrats increase pressure on his administration to reduce unaffordable home-loan payments.
The White House is “committed to building on” its programme to help borrowers refinance mortgages, Mr Bush said in his weekly radio address yesterday. Officials are weighing measures to “provide some additional help to some homeowners”, White House spokesman Tony Fratto said.
Support is growing among policy makers, including Federal Reserve chairman Ben S Bernanke, to urge lenders to write down the principal on loans to keep homeowners from abandoning their properties.
Mr Bush has so far resisted using government funds or guarantees to stem the surge in mortgage foreclosures.
A plan being considered seeks to tackle underwater loans, or mortgages that are larger than the value of a home, the Washington Post reported yesterday, citing unidentified officials.
The Federal Housing Administration will encourage banks to forgive part of the debt and refinance smaller mortgages with backing from the government, the Post said. — Bloomberg
Source: TodayOnline
Filed under: Property News, US Subprime
idealresidence