WACPtv IS SWITCHING TRACKS .. CLICK HERE!......STAY TUNED FOR THE BEST AND THE REST OF YOUR LIFE... IT BECAME TOO EXPENSIVE TO STAY ON THIS TRAIN.............. ENJOY YOUR NEW FREE RIDE!
101FOOD I 202COM303CRAF404EDU505ENGINE I606FASHN707HEALTH I808PERF909 ESTATE110MONEY111REFORM I112GRAPHIC

        MOVIES & MUZIC                  I                  WOW - MUST WATCH!               I               ALT DIRECTORY               I                  NEW OPPORTUNITIES

Obama Unveils $75 Billion Mortgage Relief Plan

AP – President Barack Obama delivers remarks about the home mortgage crisis, Wednesday, Feb. 18, 2009, at … MESA, Ariz. – Seeking to tackle "a crisis unlike any we've ever known," President Barack Obama unveiled an ambitious $75 billion plan Wednesday to keep as many as 9 million Americans from losing their homes to foreclosure.

Announcing the plan in Arizona — a state especially hard hit by the housing crunch — Obama said that turning around the battered economy requires stemming the continuing tide of foreclosures. The housing crisis that began last year set many other factors in motion and helped lead to the current, widening recession.

"In the end, all of us are paying a price for this home mortgage crisis," Obama said at a high school outside Phoenix. "And all of us will pay an even steeper price if we allow this crisis to deepen."

But while talking in broad strokes about the importance of the issue to the economy as a whole, the president took care not to miss the pain that the housing problems are causing in individual families

"The American Dream is being tested by a home mortgage crisis that not only threatens the stability of our economy but also the stability of families and neighborhoods," he said. "While this crisis is vast, it begins just one house and one family at a time."

More expensive than expected, Obama's plan aims to keep between 7 million and 9 million people from foreclosure. Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody's Economy.com.

Headlining Obama's plan is a $75 billion Homeowner Stability Initiative, which would provide a set of incentives to mortgage lenders in an effort to convince them to help up to 4 million borrowers on the verge of foreclosure. The goal: cut monthly mortgage payments to sustainable levels, defined as no more than 31 percent of a homeowners income. Funding would come from the $700 billion financial industry bailout passed by Congress last fall.

Another key component would specifically help those said to be "under water" — with dwellings whose market value have sunk below the principal still owed on the mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that — if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.

Housing Secretary Shaun Donovan stressed that homeowners don't need to be delinquent in order to get help.

"This is necessary policy. It's smart economics. And it's just and fair," Treasury Secretary Timothy Geithner told reporters.

Asked why the cost had jumped to $75 billion from initial talk of a $50 billion effort, Geithner said, "We think that's necessary to make a program like this work."

And he said relief would be almost instantaneous, basically as soon as rules are published March 4. "You'll start to see the effects quite quickly", Geithner said.

Sheila Bair, chairman of the Federal Deposit Insurance Corporation, said previous efforts had largely flopped. "We've not attacked the problem at the core," she told reporters. "We are woefully behind the curve."

The biggest players in the mortgage industry already had halted foreclosures pending Obama's announcement.

"The plan I'm announcing focuses on rescuing families who have played by the rules and acted responsibly," Obama said. "It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans."

He issued a warning as well: "All of us must learn to live within our means again."

He said the plan will not help those who took risky bets by buying homes to sell them, not live in them, or dishonest lenders who distorted facts for naive buyers, or buyers who signed on for loans they knew they could not afford.

"This plan will not save every home," Obama said.

In tandem with the foreclosure plan, the Treasury Department announced it would double the size of its lifeline to Fannie Mae and Freddie Mac, seeking to bolster confidence in the mortgage giants effectively taken over by the government last fall. The government said it would absorb up to $200 billion in losses at each company, by using money Congress set aside last year, and will continue purchasing mortgage-backed securities from them.

The Treasury said the increased support for Fannie Mae and Freddie Mac didn't reflect projected losses at the two companies. The two companies are currently projected to need a combined government subsidy of about $66 billion, well short of the new promise of up to $400 billion.

Asked about the doubling of the guarantees for Fannie and Freddie, Geithner said: "This is not a judgment about the expected losses ahead. It underscores commitment, and that is very important to help keep mortgage rates low." Geithner said most not all of the money would come the financial bailout fund.

The president's announcement came a day after he signed into law a $787 billion economic stimulus plan he hopes will spark an economic turnaround and create or save 3.5 million jobs.

At the same time, the administration was grappling with the darkening prospects for the U.S. auto industry.

Even as Detroit carmakers submitted restructuring plans to qualify for continued government loans, General Motors Corp. and Chrysler LLC asked for another $14 billion in bailout cash.

___

Alan Zibel reported from Washington; Associated Press Writers Liz Sidoti and Martin Crutsinger also contributed to this report.

Views: 9

Comment

You need to be a member of WACPtv to add comments!

Join WACPtv

1.0 SPACEBOOK ALMANAC. The MULTI-MEDIA INTERACTIVE AGGREGATE OF CATEGORIZED CONSCIOUS CREATIVE CONTENT & ACTIONS IN REAL-TIME..JOIN US NOW!

CONNECTIONS

 GBI  UIN U2bCh  Share |

WE ARE THE DIVINE SOLUTIONS TO THE WORLD....LET OUR TRUE SPIRIT BE REVEALED TO THE WORLD!

RSS

Wales 'behind' in technology to detect prostate cancer

The mpMRI scan is currently available in just three out of seven Welsh health boards.

Emotional eating 'learned by children not inherited'

Genes are significant in most eating behaviours but not emotional under- or overeating, say experts.

Cannabis oil row: Billy Caldwell discharged from hospital

The 12-year-old is treated in hospital for his severe epilepsy with the oil, which is illegal in the UK.

Theresa May is asked where NHS cash will come from

Theresa May is asked how the government will fund a £20bn cash increase for the NHS.

Tax rise need to help pay for £20bn NHS boost, says PM

The prime minister promises any tax increases will be introduced in a "fair and balanced" way.

HPV vaccine cuts cancer-causing infection

The vaccine has brought about an 86% reduction in cancer-causing infection, a study has found.

Politicians unite to demand dignity for terminally ill

Politicians describe the current system as "cruel and lacking in dignity and compassion".

Hundreds of breast cancer patients 'denied reconstruction'

One in five NHS bodies is limiting access to corrective surgery, a breast cancer charity report says.

WHO: Gaming addiction 'a mental health condition'

For millions, it is a harmless hobby but for some it can become more than that.

Over 40s health check to include dementia advice

Public Health England wants to give advice to patients to help reduce the risk of the condition.

Teenager's cowpox diagnosis surprises doctors

A 15-year-old boy is diagnosed with the historical disease now usually only found in animals.

The common condition that has no cure

One in five women in the UK are thought to have PCOS, a condition for which there’s no cure.

The youngster challenging children's perceptions of disability

Paddy and his mum visit schools to help challenge children's perceptions of disability.

Children in England consuming 'twice as much sugar as recommended'

Youngsters in England have consumed their recommended 2018 sugar allowance before the end of June.

Babies most likely to be born at 4am, study finds

More than 70% of births took place outside working hours in England, a study of five million births found.

Nottingham beauty therapists taught to spot skin cancer signs

There are more than 2,400 deaths from melanoma every year, according to Cancer Research UK.

Gene therapy reverses rat's paralysis

Experts say the findings could be life-changing for millions of patients.

World's first quadruplets born by Caesarean section turn 70

The Goods were the world's first surviving quads to be born by Caesarean section.

How one woman coped when 13 years of caring ended

Helen Clues says she's now rebuilding a life after years spent caring for her parents and husband.

One-handed cookbook for stroke patients

Patients often lose the use of one of their arms, making everyday tasks more difficult.

Music

Loading…

Badge

Loading…

© 2018   Created by TheArtiste Hassan.   Powered by

Badges  |  Report an Issue  |  Terms of Service