home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.

President Outlines Mortgage Plan

Help for delinquent, foreclosed borrowers

August 31, 2007


President Bush has proposed a plan to help delinquent borrowers avoid foreclosure.

Acknowledging the strain the subprime sector has placed on the mortgage market, the administration called on Congress to pass pending reform legislation for the Federal Housing Administration, according to a summary of his plan released by the White House.

In addition, "FHA-Secure" will be launched. The program will help borrowers who have good credit but have become delinquent on their mortgage as a result of an increase to their mortgage payments. It would also utilize risk based pricing on FHA premiums.

photo of George W. Bush
White House photo
of President Bush
"By calling for an immediate administrative action to allow the FHA to guarantee loans for borrowers who have fallen behind on their mortgage payments, the president is moving quickly to address the problems of home owners who are facing foreclosure," Brian Catalde, president of the National Association of Home Builders, said in a statement Friday afternoon.

"For the first time, FHA will be able to offer many of these homeowners an option to refinance their existing mortgage so they can make their payments and keep their homes," the White House statement said.

But Bush was clear that there will be no federal bailout of troubled lenders or of borrowers who bought a home they knew they could not afford, according to a transcript of his statements issued by the White House. While the problems in the subprime market may be tremendous for affected borrowers, they are still modest in relation to the size of the U.S. economy.

The president's plan was immediately endorsed by the National Association of Realtors, which issued a statement indicating it would continue to push Congress "to enact other FHA program changes that will help ease the current crisis and protect consumers."

"FHA can play a crucial role in helping stranded borrowers keep their homes," the Mortgage Bankers Association responded in its own press release. "It is essential that the Federal Housing Administration have the tools and flexibility to adjust its products and programs to meet the evolving needs of borrowers."

Bush is also proposing a temporary change to the tax code that would stop taxing foreclosed borrowers for charged off deficiency balances when their homes sell for less than the mortgage balance, his statement said. Bills have already been introduced into both houses of Congress proposing the tax relief.

Alphonso Jackson, secretary of the U.S. Department of Housing and Urban Development, and Treasury Secretary Henry Paulson will reach out to community groups, servicers and government sponsored enterprises to identify and help borrowers facing potential hardship, according to the White House.

HUD will also propose reforms to the Real Estate Settlement Procedures Act this fall that would promote comparison shopping by prospective borrowers, limit increases to closing costs and improve disclosures, the administration's statement said.

A presidential council on financial literacy will reportedly be created, while a working group lead by Paulson will examine the role of credit ratings agencies and the securitization process.

"The President's attention to turmoil in the mortgage markets and to the plight of homeowners facing foreclosure will encourage Congress to take the needed steps to reform FHA and help keep borrowers who face difficulties making their mortgage payments in their homes," MBA Chairman John M. Robbins said in that group's statement. "Many of the proposals President Bush rolled out today are ones for which we have long advocated, even before the recent troubles in the subprime mortgage market."

The "mortgage banking industry stands ready roll up its sleeves and get to work with all stakeholders to help stem the tide of rising foreclosures," MBA added. "Every foreclosure is a tragedy. For the homeowner, for the lender and for the community."

The president said at today's press conference that the administration will continuing working towards improvements to the mortgage marketplace -- an important segment of the U.S. economy.

"All the steps I've outlined today, we will deliver help and hope to American families who need it," Bush said. "We'll help guard against future problems in the housing sector."

George Hanzimanolis, the president of the National Association of Mortgage Brokers, issued an announcement this afternoon stating, "It is now up to Congress to continue the progress that has been made, and pass legislation that will modernize FHA."

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: [email protected]

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

Foreclosure News

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders