Obama's Housing Policy Expanded

At a town hall meeting this week, President Obama proposed a new initiative that would give unemployed homeowners more wiggle room on their late mortgage payments.

Under the new policy, lenders must "allow unemployed homeowners to delay their monthly payments for up to a year without threat of foreclosure," reports Peter Wallsten and Brady Dennis of The Washington Post. This is an override of the existing policy that "required banks to allow FHA borrowers to put off their mortgage payments for a minimum of four months while lenders worked out options to keep people in their homes."

President Obama made the announcement a day after he acknowledged that his housing policy thus far has been ineffective.

Wallsten and Dennis explain, "Much of the criticism of the administration's housing policy has focused on the Treasury Department's foreclosure prevention initiative called the Home Affordable Modification Program, or HAMP, one of a series of measures that the administration has rolled out with mixed results. The program was funded by the financial bailout and carved out tens of billions of dollars to pay banks to modify the mortgages of distressed homeowners, or at least lower their monthly payments."

Full Story: Obama admits misstep on housing, extends help to jobless homeowners

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!

City Coasters

Hand-drawn engraved maps of your favorite neighborhoods are divided up across 4 coasters making each one unique.
$36.00
Book cover of Where Things Are from Near to Far

Where Things Are From Near to Far

This engaging children's book about planning illustrates that "every building has its place."
$19.95