Affordable Mortgage Plan a Flop, Says Frank

The Hope for Homeowners Act was designed to allow foreclosed homeowners to keep their homes by drawing up new and more affordable mortgages for qualified applicants. Barney Frank is one of many proclaiming it a failure.

1 minute read

April 22, 2009, 1:00 PM PDT

By Judy Chang


"Hope for Homeowners was sponsored by Rep. Barney Frank (D-MA), the powerful head of the House Financial Services Committee.

'The problem was when we passed it, and it's interesting how things have changed, we were under pressure from the right,' he says. 'Remember, it was the Bush administration. So to get it passed we had to dumb it down, which I regretted, but I thought it was better than nothing.'

Frank says some lawmakers didn't want to spend taxpayer money on what they saw as a bailout for homeowners. So the lawmakers basically tightened the lid on the program. 'The fees were too high. The restrictions on who could enter it were too much,' Frank says.

Critics say homeowners didn't like the program, and most couldn't qualify anyway. There were problems with the way the law dealt with second mortgages such as home equity loans. And, perhaps most importantly, there was also no real money in it for the lenders who were supposed to do the work to refinance the borrowers.

'We cut it back, and then the Senate cut it back even further,' says Frank, adding that the program got cut back so far it just became unworkable."

Thursday, April 16, 2009 in NPR

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 25, 2025 - Diana Ionescu

Map of Western U.S. indicating public lands that would be for sale under a Senate plan in yellow and green.

Map: Where Senate Republicans Want to Sell Your Public Lands

For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

June 19, 2025 - Outdoor Life

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Close-up of full beer glass with purple train-themed design sitting on bar between two frosty tall cans.

Platform Pilsner: Vancouver Transit Agency Releases... a Beer?

TransLink will receive a portion of every sale of the four-pack.

June 30 - Cities Today

Vintage red Toronto streetcar passing in front of Rogers Arena in Toronto, Canada.

Toronto Weighs Cheaper Transit, Parking Hikes for Major Events

Special event rates would take effect during large festivals, sports games and concerts to ‘discourage driving, manage congestion and free up space for transit.”

June 30 - blogTO

Map of Berlin with ring roads in green and red.

Berlin to Consider Car-Free Zone Larger Than Manhattan

The area bound by the 22-mile Ringbahn would still allow 12 uses of a private automobile per year per person, and several other exemptions.

June 30 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.