Tags: bush | aid | mortgage

Bush to Outline Aid to Mortgage Holders

Friday, 31 Aug 2007 08:31 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

WASHINGTON -- Offering federal help for strapped mortgage holders, President Bush is proposing to aid hundreds of thousands of borrowers hard hit by the housing slump.

The president on Friday was to talk about several initiatives and reforms to help homeowners with risky mortgages keep their homes, a senior administration official said Thursday. Bush also was to discuss efforts to prevent these kinds of problems from arising in the future.

The official said Bush will direct Treasury Secretary Henry Paulson and Housing Secretary Alphonso Jackson to work on an initiative to help troubled mortgage holders get services and products they need to keep them from defaulting on their loans. The official spoke on condition of anonymity to discuss details of the initiatives ahead of the presidential event.

Bush also planned to:

  • Urge Congress to pass Federal Housing Administration overhaul legislation that would give the FHA more flexibility in assisting mortgage holders with subprime mortgages.

  • Pledge to work with Congress to reform the tax code to help troubled borrowers rework their loans.

  • Call for rigorously enforcing predatory lending laws and strengthening lending practices.

    Foreclosure and late payments have spiked, especially for so-called subprime borrowers with blemished credit histories or low incomes. Higher interest rates and weak home values have made it impossible for some to pay or to keep up with their monthly mortgage payments. Some overstretched homeowners can't afford to refinance or even sell their home.

    Mortgage foreclosures and late payments are expected to worsen. Some 2 million adjustable rate mortgages are to reset to higher rates this year and next. Steep penalties for prepaying mortgages have added to some homeowners' headaches.

    The economy enjoyed a strong revival in the spring although growing troubles in housing and credit markets have darkened prospects considerably since then. The Commerce Department reported on Thursday that the gross domestic product grew at an annual rate of 4 percent in the second quarter -- the strongest showing in more than a year.

    But that growth could be the best showing for some time as the economy continues to be battered by the worst housing slump in 16 years and a widening credit crisis that has sent financial markets on a roller-coaster ride in recent weeks.

  • © 2014 Newsmax. All rights reserved.

    Share:
      Comment  |
       Contact Us  |
      Print  
      Copy Shortlink
    Around the Web
    Join the Newsmax Community
    Please review Community Guidelines before posting a comment.
    >> Register to share your comments with the community.
    >> Login if you are already a member.
    blog comments powered by Disqus
     
    Email:
    Country
    Zip Code:
    Privacy: We never share your email.
     
    Hot Topics
    Follow Newsmax
    Like us
    on Facebook
    Follow us
    on Twitter
    Add us
    on Google Plus
    Around the Web
    Top Stories
    You May Also Like

    Rush Limbaugh's Call Screener: Liberalism 'Horrific' to Black Communities

    Sunday, 21 Sep 2014 22:23 PM

    Calling liberalism's effect on black communities "horrific," the longtime call screener for Rush Limbaugh says that for  . . .

    Activist Suing Over NYC Refusal to Put Anti-Jihad Ad on Buses

    Sunday, 21 Sep 2014 20:00 PM

    Activist Pamela Gellar is suing the New York City transit agency for refusing to place her anti-Jihadist ad on the city . . .

    Panetta: Obama Wrong on Iraq Pullout, Failure to Arm Syrians

    Sunday, 21 Sep 2014 19:36 PM

    Former Defense Secretary Leon Panetta says his old boss, President Barack Obama, erred when he failed to leave a residua . . .

    Most Commented

    Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

     
    NEWSMAX.COM
    America's News Page
    ©  Newsmax Media, Inc.
    All Rights Reserved