President Obama introduced some of the details surrounding his housing relief plan. Much of what we need to know relating to Fannie and Freddie Mac will not be released until March 4, 2009. Here’s a short summary of what we understand it to be now.
- Facilitating refinances of mortgages controlled or serviced by the GSEs or government, even with Loan to Value over 80%
- Government sharing of costs to lower borrower mortgage payments to 31% of income
- Incentives for servicers (the bank) to modify
- Increasing preferred stock purchases in Fannie and Freddie to $200 billion each from $100 billion
- Increasing Fannie and Freddie balance sheets to $900 billion from $850 billion
- Standardized modification guidelines to be pushed industry-wide
- Allowing “judicial modifications” also known as cram-down via bankruptcy
Link to Executive Summary
Link to Fact Sheet
Link to Consumer Q & A
Link to Housing Example Sheet
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About the Author
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog