Obama Unveils 3-Part, $275B Mortgage Plan

Proposal would require HAMP to review all delinquent mortgage loans

(NEWSER) - The Obama administration is considering kicking up the fight against foreclosures by banning any that haven't been reviewed by its Home Affordable Modification program. The move would prevent lenders from initiating foreclosure unless HAMP had screened the loan and found it unsalvageable. it would also require them to halt existing foreclosure proceedings when homeowners enter a trial repayment plan, Bloomberg reports. More»

$50B plan proving ineffective as more mortgage holders lose their jobs

(NEWSER) - The Treasury's $50 billion loan-modification program is in danger of being swamped as the foreclosure crisis accelerates, the Congressional Oversight Panel said in a report yesterday. The Home Affordable Modification Program has met its target of 500,000 trial mortgage modifications started by November 1, but the watchdog warned that foreclosure starts are outnumbering modifications 2 to 1 as the crisis spreads from subprime to prime mortgages. More»

(NEWSER) - The Obama administration's plan to help millions of homeowners avoid foreclosure has so far been a major failure, Politico reports. It's reached just 160,000 of the 3 to 4 million homeowners it was supposed to protect, and another 2 million homes are expected to be foreclosed upon before the year is out. The White House blames mortgage servicers for dragging their feet, but lawmakers on both side are getting testy. More»

Even Democrats are wary of bailout

(NEWSER) - President Obama may be facing a mutiny on his mortgage bailout plan. After CNBC reporter Rick Santelli’s on-air rant about the bailout "promoting bad behavior" by rewarding losers, Obama’s spokesman swatted the criticism away. But, Politico reports, public opinion is leaning in Santelli's direction—even 49% of Democrats oppose the proposal. Says one Maryland Obama voter, “’I’m not sure why we should work and pay for someone else to have a granite countertop or an extra bathroom.” More»

Administration to enable cuts in monthly payments, refinancing

(NEWSER) - Today the Obama administration unveils its plan to help struggling homeowners with cuts in monthly payments, more possibilities for refinancing, and changed bankruptcy rules. Its central plank is a $50 billion subsidy for mortgage companies to make home loans more affordable. As the Wall Street Journal reports, economists are largely agreed that ending the foreclosure spiral and buoying house prices is key to ending the crisis. More»