President Obama released information Wednesday, February 18, on his proposed foreclosure prevention plan. The program places more than 75 billion dollars towards stopping a large cause of the economic crisis. The three main elements of the plan include a program to refinance 4 million to 5 million homeowners into cheaper mortgages, a 75 billion dollar program to keep 3 million to 4 million homeowners out of foreclosure, and doubling the government's commitment to Fannie Mae and Freddie Mac.
While many think the plan is a step in the right direction, some critics say it is only a temporary solution and could cause more problems. The proposal does not include a plan for dealing with second mortgages and would be voluntary. Not all lenders would be willing to make the adjustments necessary to help suffering homeowners.
The proposed plan has some parts that could be enforced by government regulators and some that require approval from congress.
No comments:
Post a Comment