Monday, January 30, 2012

Two Obama initiatives to address foreclosure crisis face hurdles


The president's proposals include an expanded refinancing plan for struggling homeowners and a new, aggressive probe of financial firms' mortgage practices.

Two new initiatives from President Obama to address the foreclosure crisis — more help for struggling homeowners and aggressive investigations of financial firms — face significant hurdles as the nation's real estate troubles linger in a volatile election year.

A new refinancing plan that expands on an existing initiative would allow homeowners who are current on their mortgage payments to retool their loans and save as much as $3,000 a year on payments. This expansion would be paid for by a new tax on large banks that Obama originally proposed in 2010 that has gone nowhere in Congress — and is unlikely to be approved by Republicans facing reelection in the fall.

Source:Latimes.com

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