Senators from both sides of the aisle have signed a letter urging President Obama and the administration to “act quickly and aggressively to ensure that responsible homeowners receive the full benefit of [record-low interest] rates”[1]. The letter reminds the readers that the president committed in his speech to congress last month that he would work to help homeowners refinance while record-low interest rates last. It also notes that the president believes that this move alone could put “more than $2,000 a year in family’s pocket.” The letter is addressed to Shaun Donovan, Secretary of Housing and Urban Development (HUD); Timothy Geithner, Secretary of the U.S. Department of the Treasury; Gene Sperling, Director of the National Economic Council; and Edward DeMarco, Acting Director of the Federal Housing Finance Agency (FHFA).
In response to the letter, Shaun Donovan has said that an “expanded refinance program” is coming “in a couple weeks”[2]. Most expect that the program will be based around the same concepts as the Home Affordable Refinance Program (HARP), which has struggled like the other programs in the Home Affordable series but has been relatively more successful than its brethren having assisted about 865,000 borrowers. HARP currently excludes the majority of underwater homeowners and delinquent borrowers[3].
Critics of the administration and of congress warn that even with bipartisan action, the entire process is too mired down to help homeowners in trouble now. Do you agree? What do you think should be done?
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[1] http://nationalmortgageprofessional.com/news26927/coalition-us-senators-push-obama-administration-clear-refi-hurdles
[2] http://online.wsj.com/article/BT-CO-20111011-714475.html
[3] http://www.totalmortgage.com/blog/mortgage-rates/bipartisan-group-of-senators-endorse-broad-refinance-program/14257
Anyone blaming Geitner and the President for the failure of HARP to aid homeowners better get out of behind Rush Limbaugh’s radio! I have spent the last six months attempting to asist former Mortgage clients get their homes refinanced to the actual current value, all to no avail. B of A tells me,” everyone qualifies, the home is overvalued accordig the the program outlines, but I cannot get one to close. It gets down to signing time, and the Bank won’t close the loan”. USNB relates,”We just can’t, won’t do those anymore.” Wells says,”That program doesn’t exist anymore”. What it comes down to is that the banks want to keep the inflated values on their books as paying mortgages. If these homeowners were in default, they stand a chance of assistance. But if they are paying the inflated bills, the banks want to keep those loans on their books!