Obama To Unveil Mortgage Refinance Plan Targeting Underwater Borrowers (UPDATED)

Long-awaited and anticipated help in refinancing for some underwater borrowers who are current on their mortgage payments.  This won't fix the economy but it will help a few million families.

UPDATE - Will Obama's latest mortgage refinance plan help you? - CBS

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Original story is below.

Marketwatch

WASHINGTON -- President Barack Obama on Monday is due to unveil a changed mortgage refinance plan that would allow homeowners who have suffered steep price declines on their properties to get cheaper loans.

The Home Affordable Refinance Program is being changed so that any Fannie Mae or Freddie Mac guaranteed mortgage could be refinanced. 

Click HERE to see if Fannie or Freddie has guaranteed your mortgage.

With house prices nationally roughly a third below their peak, there are millions of borrowers who will potentially be eligible to refinance into mortgages near record lows — the 30-year carried an interest rate of 4.11% last week — rather than the mere 894,000 borrowers who have used the program so far.

The new plan will require homeowners to be current on their payments.

According to the Federal Housing Finance Agency, the regulator for Fannie Mae and Freddie Mac, the program will lower fees, eliminate the current 125% loan-to-value ceiling, waive lender warranties and eliminate the need for property appraisals.

The plan is only for loans sold to Fannie or Freddie by May 31, 2009. The FHFA said it will provide operational details to mortgage lenders by Nov. 15.

“We know that there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach,” said FHFA Acting Director Edward J. DeMarco in a statement.

By the end of 2013, the FHFA’s “best estimate” is that the number of refinances doubles from current level, though it cautioned “such forward-looking projections are inherently uncertain.”

The move could have a major impact on the U.S. economy if the plan works as designed: There are $550 billion worth of mortgages that could benefit from a removal of refinancing impediments, economists at Morgan Stanley estimate.

Obama is due to announce the program in Las Vegas, which according to data compiled by RealtyTrac has the highest number of foreclosures in the country.

Update on Oct 24, 2011 at 9:30 PM by DailyBail

Updated with video from CBS - Interview with economist Dean Baker.

Comments

[Josie]

Luv the photo!

[DailyBail]

Regulator throws lifeline to underwater borrowers

http://www.reuters.com/article/2011/10/24/us-usa-housing-idUSTRE79K6JY20111024

More on this story from Reuters

[DailyBail]

Two million to three million elderly parents had their identities stolen between 2006 and 2010 by a younger family member for fraudulent reasons including opening lines of credit, according to a new study.

http://blogs.reuters.com/reuters-money/2011/10/21/identity-theft-among-family-members-affects-millions/

[Cheyenne]

Obama is the biggest loser in American history.

[Backgammon]

What will make this any different than "Cash for Clunkers", Cash for Caulkers, Cash for Unions?
I hope it is successful, but I really doubt it.

[Texas Dar]

Luv the photo!

Holly Crap, im printing of 10 of these and taking them to the gun range. If I get $5.00 for each im gona print a Bunch of Em.......?

[DailyBail]

Obama bypasses Congress with mortgage plan

http://www.activistpost.com/2011/10/obama-bypasses-congress-with-mortgage.html

[DailyBail]

Will Obama's latest mortgage refinance plan help you?

http://www.cbsnews.com/8301-503544_162-20124922-503544/will-obamas-latest-mortgage-refinance-plan-help-you/

[Dr. Pitchfork]

Ugh.

Under the modified plan, "put back" liability at banks will be erased for any underwater mortgage that is refinanced through HARP, eliminating Fannie and Freddie's ability to sack lenders with losses in the event that the mortgage does not pan out.
http://www.huffingtonpost.com/2011/10/24/foreclosure-plan-obama-harp-refinancing_n_1028554.html

[Shorebreak]

Assuming that 1 million homeowners can benefit it is unlikely that half of them will even apply, let alone see the process through to the end. A more realistic expectation will be for an 18 to 25 percent full participation rate by those eligible for the program. Average savings for each homeowner under the program would be only $2,500. Another band-aid sized solution, with little anticipated results, to a major wound to our economy, and the housing crisis in particular.

[Texas Dar]

Maby im just the last one to find this out, or did I trip on the next big stab in the back to the American People..........?

Fed lets Bank of America insure
multi-trillion dollar derivative (gambling) loss
with FDIC insurance

Beginning of the end
http://www.realecontv.com/videos/central-banks/fed-lets-bank-of-america-insure-multi-trillion-dollar-derivative-gambling-loss-with-fdic-insurance.html

[Texas Dar]

This is why I Hate the President of the United States of America............

http://www.youtube.com/watch_popup?v=hxlcVAEj0sM&vq=large

Wow!!!! Everyone needs to watch this one...
>
>
> If this does not speak volumes to you, then you are not paying attention.
>
> A new one, you can be the judge if it was disrespectful. I have my
> opinion....

[john]

Just another photo op...

http://www.norwaynews.com/en/~view.php?72X9254FQ44836w285Kgi844PM2882QU76HDl253LcA8

[john]

Obama Bluffs on ReFi?

http://www.zerohedge.com/contributed/obama-bluffs-refi