Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Uproar After NC State Agent 'Fixes' Girl's Lunch Preschooler has to eat chicken nuggets instead of mom's meal »

Bush Promises Mortgage Relief

Fed agencies to offer aid to help Americans during credit squeeze

By Wesley Oliver,  Newser Staff

Posted Aug 31, 2007 2:52 PM CDT
Email

(Newser) – The government will roll up its sleeves and aid homeowners battered by the subprime mortgage crunch, but it will forsake “speculators” trying to exploit the crisis, President Bush said today. The FHA will step in and help delinquent borrowers avoid foreclosure by refinancing at lower rates, but experts predict more than 2 million Americans will lose their homes, Bloomberg reports.

Tighter credit conditions and higher borrowing costs have been squeezing homeowners, and Democrats have slammed Bush for not stepping in. The president said a new government program will allow "many families who are struggling now" but have good credit to refinance. An industry executive called the initiative “well-timed,” especially as private lenders bail on loans.

President Bush, center, accompanied by Treasury Secretary Henry Paulson, right, and Housing Secretary Alphonso Jackson, makes a statement on home ownership financing, Friday, Aug. 31, 2007, in the Rose Garden at the White House in Washington. (AP Photo/Ron Edmonds)
President Bush, center, accompanied by Treasury Secretary Henry Paulson, right, and Housing Secretary Alphonso Jackson, makes a statement on home ownership financing, Friday, Aug. 31, 2007, in the Rose...   (Associated Press)
The Countrywide Banking and Home Loans office is seen in Glendale, Calif. in this April 26, 2007 file photo. While most of the mortgage market worries so far have focused on the huge losses flowing from the subprime home loans made to people with bad credit, the option and interest-only...
The Countrywide Banking and Home Loans office is seen in Glendale, Calif. in this April 26, 2007 file photo. While most of the mortgage market worries so far have focused on the huge losses flowing from...   (Associated Press)
President Bush, center, accompanied by Treasury Secretary Henry Paulson, right, and Housing Secretary Alphonso Jackson, makes a statement on home ownership financing, Friday, Aug. 31, 2007, in the Rose Garden at the White House in Washington. (AP Photo/Ron Edmonds)
President Bush, center, accompanied by Treasury Secretary Henry Paulson, right, and Housing Secretary Alphonso Jackson, makes a statement on home ownership financing, Friday, Aug. 31, 2007, in the Rose...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Bush: Americans can get by with "a little help from their government"
Associated Press

Bush's goal to help investors, not Wall Street
New York Times

Market's reaction to Bush, Bernanke comments
MarketWatch

Video analysis of Bush speech
CNBC

President Bush's full speech
Wall Street Journal

Money • US

 
housing market • subprime mortgages • home sales • global economy • US economy • Freddie Mac • Fannie Mae • Federal Housing Administration • private lenders • home resales • homeowners • borrowers • George W. Bush • foreclosures

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Foreclosure Scandal Messing Up Home Sales

Obama Housing Rescue Plan Leaves Many Out in Cold

Freddie Mac to Let People Stay in Foreclosed Houses

Fannie Mae: Tenants Can Stay
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne