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Housing Market

By Intero Real Estate | February 19th, 2009

Homeowner and Stability Affordability Plan praised

President Obama’s plan to help the housing market drew praise this week.

“The administration’s proposed plan, combined with provisions like the $8,000 first-time home buyer tax credit in the just-enacted American Recovery and Reinvestment Act, will help minimize foreclosures, shrink housing inventory, stabilize home values and move the country closer to an economic recovery,” said Charles McMillan, president of the National Association of Realtors®.

The Obama administration outlines the following as key components of the plan:

  • Refinancing for up to 4 to 5 million homeowners to make their mortgages more affordable.
  • A $75 billion homeowner stability initiative to reach up to 3 to 4 million at-risk homeowners.
  • Supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.

John A. Courson, president of the Mortgage Bankers Association, also had praise for the effort, noting “it provides crucial refinance opportunities to borrowers whose mortgages are held or guaranteed by Fannie Mae or Freddie Mac.”

However, he noted the association had some concerns. Specifically, he said the plan doesn’t seem to offer much help to borrowers whose loan exceeds their property value by more than 5 percent.

“This will limit the plan’s success in some of the hardest hit areas in California, Florida, Nevada and Arizona, as well as some areas on the East Coast,” Courson said. 

You can find the executive summary of the plan here.  

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Categories: Charles McMillan, Homeowner and Stability Affordability Plan, Intero Real Estate Services, John A. Courson, Mortgage Bankers Association, National Association of Realtors®, Obama
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