Homeowner Affordability and Stability Plan Unveiled
The Obama administration unveiled the mortgage foreclosure component of its revised economic recovery package today by outlining the Homeowner Affordability and Stability Plan. The plan involves a three-pronged approach to buoying the housing market. First, it targets the four to five million homeowners whose loans are held by, or guaranteed by, Fannie Mae or Freddie Mac and wish to refinance but cannot because they lack enough equity in their homes despite being current on their loans. Second, it provides an incentive to mortgage servicers for loan modifications for loans in imminent danger of foreclosure. Third, it increases available credit to the housing markets by making available an additional $100 billion for the Treasury Department to investment in preferred stock of each of Fannie Mae and Freddie Mac.
Click here for the Homeowner Affordability and Stability Plan executive summary, click here for the fact sheet, and click here for three case studies.
