AUG/SEPT 2017: After 9 Yrs ... "WE ARE CREATIVE PEOPLE" HAVE TRAVELED TO... "THE BLACK WHOLE & established the 1st SPACEBOOK of COSMIC RECORDS ... SEARCHING * COLLECTING * ORGANIZING & SHARING ... THE VITAL CONTENT FROM AND ABOUT PEOPLE OF COLOR *  PAST * PRESENT & FUTURE ... ALL IN ONE LIVE SPACEBOOK ... SIGN UP FOR YOUR FREE PROMISED 40 ACRES OF REAL eSPACE (MULE NOT INCLUDED) ... VIEW OUR CURRENT MISSION TO MPOWER CONTENT PROVIDERS & THEIR SUBSCRIBERS ... LET'S STAY TUNED TOGETHER * SHARE & GROW TOGETHER!      ...
101FOOD I 202COM303CRAF404EDU505ENGINE I606FASHN707HEALTH I808PERF909 ESTATE110MONEY111REFORM I112GRAPHIC

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

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!

Photos

Loading…
  • Add Photos
  • View All

CONNECTIONS

 GBI  UIN U2bCh  Share |

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

RSS

Stephen Hawking: I'm worried about the future of the NHS

Cambridge professor criticises health secretary and warns about role of private sector in the NHS.

Calories in popular foods must be cut, say health officials

Health officials target pizzas, burgers and ready meals to help tackle child obesity in government drive.

Newcastle health boss Sir Leonard Fenwick sacked

Longest serving NHS chief executive Sir Leonard Fenwick called it "an orchestrated witch hunt".

Mental health services patchy, says PM

Theresa May says the UK's mental health services are "patchy" and has told Newsbeat she's going to review them.

Peanut allergy treatment 'lasts up to four years'

Four years after children in a study took the oral treatment, 70% had no allergic reaction to peanuts.

Bowel cancer test: 'No health minister' means NI people must wait

A new screening test for bowel cancer in NI is on hold because there is no Stormont health minister.

Maternity 'must improve' at baby-deaths hospital trust

Progress is made at the Shrewsbury and Telford trust but maternity services must improve, the CQC says.

Meningitis jab uptake 'worryingly low'

School-leavers are being urged to be immunised against the highly aggressive strain.

Time spent frail in old age 'doubles'

More care homes are needed as an ageing population puts pressure on services, researchers suggest.

Apology over Indian blood donation 'embarrassment'

A "communication breakdown" meant 100 members of the Indian community were not allowed to give blood.

Japanese fungus spreading in UK hospitals

More than 200 patients have been infected, but none has died, Public Health England confirms.

Plants 'hijacked' to make polio vaccine

A breakthrough could lead to easier, faster and cheaper vaccines.

Why Scottish babies might start sleeping in cardboard boxes

Baby boxes containing essential items are to be delivered to new mothers across Scotland.

'Fat but fit' still risk heart disease

Even if medical tests don't show up any problems, being overweight is bad for the heart, experts say.

NHS cyber-defender Marcus Hutchins back online

Marcus Hutchins was arrested earlier this month on a trip to cyber-security conferences in Las Vegas.

Anger and hatred can make us feel happy, says study

People have higher life satisfaction if they feel emotions they desire - even if they are unpleasant.

Breast cancer helpline founder paid herself £31,000

Wendy Watson, who was awarded an MBE in 2012, has resigned as a charity trustee over the "error".

Scottish ministers urged to lead fight against 'period poverty'

A Labour MSP says access to sanitary products should be a basic right for anyone who needs them.

Vulnerable children not in crisis are 'left in limbo'

Action for Children estimates 140,000 children referred to social services do not get the help they need.

Brian Blessed 'bit off' umbilical cord delivering baby

Actor, director and Grampy Rabbit in Peppa Pig, Brian Blessed reveals Four Things You Don't Know About Me

Badge

Loading…

© 2017   Created by TheArtiste Hassan.   Powered by

Badges  |  Report an Issue  |  Terms of Service