President Obama's multi-billion dollar proposal to help homeowners involves providing them refinanced, government-backed loans. The plan is not without its doubters, however.
Designed to be a helping hand to the middle-class, the proposed plan could help over 3 million homeowners refinance, even if they are underwater. It would cost billions of dollars a year provided by a fee on big banks.
HUD Secretary Shaun Donovan spoke in support of the proposal:
"Sen. Boxer and Sen. Isakson put a bill together to support what we were doing. And we've seen broad support across the political spectrum from economists who say broader refinancing is one of the most important things that we can do, not just to help homeowners -- it's an average of $3,000 a year that they would save -- but also to boost consumer spending."
Jacqueline Hlavenka challenges several aspects of the plan in this piece for GlobeSt.com, "With interest rates near zero, many are concerned that the US Treasury Department's third expansion of its Home Affordable Modification Program could create further stagnation, since many homeowners cannot qualify for loans to begin with."
Thanks to Michael Snidal
FULL STORY: HUD Secretary Donovan: 'We Need to Do More' to Help Homeowners

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