Obama’s Making Home Affordable Program
Friday, 22 May 2009 22:11
Atty. Gene W. Choe
1904
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Declining real estate prices and negative equity continue to drive foreclosure. Many are unable to meet their monthly mortgage payments. Often one spouse has lost his/her job. They have depleted their savings and retirement fund hoping that the economy will turn around. The current problem in the housing market has affected 6 out of 10
The Obama Administration is offering the Making Home Affordable (MHA) Program to as many as 7 to 9 million homeowners who are making good-faith effort to meet their mortgage payments. Currently, homeowners who are upside down or owe more than 80% of the present value of their house find it very difficult to secure refinancing. This program will allow 4 to 5 million responsible homeowners whose loans are owned or guaranteed by Freddie Mac and Fannie Mae (GSEs) to refinance over time.
President Obama has allotted $75 billion for Home Affordable Modification Program. This program will help stop millions of forecloses and aim to keep families in their homes. The Treasury Department will work with GSEs, FHA, the FDIC and other federal agencies to implement a comprehensive multipart strategy, which have the following features: • A Home Affordable Modification Program to Reach Up to 3 to 4 Million At-Risk Homeowners • Clear and Consistent Guidelines for Loans Modifications• Requiring That Financial Stability Plan
Recipient Use Treasury Guidelines for Loan Modifications • Allowing Judicial Modifications of Home Mortgages During Bankruptcy When A Borrower Has No Other Options• Requiring Strong Oversight, Reporting and Quarterly Meetings with Treasury, the FDIC, the Federal
Reserve, and HUD to Monitor Performance • Strengthening FHA Programs and Providing Support for Local Communities
