us regulator torpedoes obama mortgage plan
Last Updated : GMT 11:18:29
Arab Today, arab today
Arab Today, arab today

US regulator torpedoes Obama mortgage plan

Arab Today, arab today

Arab Today, arab today US regulator torpedoes Obama mortgage plan

Washington - AFP

The US regulator in charge of state-backed mortgage firms Fannie Mae and Freddie Mac on Tuesday rejected an Obama administration plan to ease the housing crisis by forgiving some outstanding home loans. Responding to pressure from President Barack Obama\'s White House to use debt forgiveness to help heal the depressed housing market, Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA), squarely objected. DeMarco said the independent federal agency, in charge of taxpayer-supported Fannie and Freddie after a 2008 government rescue, will not participate fully in the program aimed at preventing foreclosures. The program, which previously has focused on refinancing mortgages, has languished since its inception. The two firms back a majority of mortgages in the United States. Even with the sweetener of Treasury department cash, DeMarco said the plan to forgive debt was unacceptable. \"FHFA has concluded that the anticipated benefits do not outweigh the costs and risks,\" he said. The FHFA has multiple responsibilities to conserve the assets of Fannie and Freddie, maximize assistance to homeowners to avoid foreclosures and to minimize the aid expense to taxpayers, he noted. He said the program, known as HAMP, would not obviously improve the prospects of slowing foreclosures and would cost taxpayers more. The decision is a blow to Obama\'s hopes of righting the housing market with just 99 days to go before the presidential election. The US Treasury secretary, Timothy Geithner, responded swiftly to DeMarco\'s decision. \"I am concerned by your continued opposition to allowing Fannie Mae and Freddie Mac to use targeted principal reduction in their loan modification programs,\" Geithner wrote in a letter to DeMarco, released by the Treasury. Geithner acknowledged that DeMarco, as the FHFA\'s acting director, had the sole legal authority to make the decision for the government-sponsored enterprises. \"However, I do not believe it is the best decision for the country, because, as we have discussed many times, the use of targeted principal reduction by the GSEs would provide much needed to help to a significant number of troubled homeowners,\" he said. The Treasury chief also cited the benefits of helping repair the housing market, still in crisis six years after a price bubble collapsed, which would in turn benefit taxpayers as the economy improved. Geithner appealed to DeMarco to reconsider his decision. The wave of foreclosures has been a key factor holding down home prices as buyers snap up distressed properties at bargain prices. US home foreclosure filings rose annually in the second quarter for the first time in two years, according to a RealtyTrac report released in July. One in 126 homes in the country had at least one foreclosure filing. Election swing-state Nevada had the highest state foreclosure rate: one in 57 homes. Arizona, Georgia, California and Florida rounded out the top five. DeMarco said he has unveiled to Congress several housing-related initiatives, including further help for borrowers looking to refinance their mortgages. Fannie and Freddie, saved from collapse amid the 2008 financial crisis, have cost the government around $150 billion in taxpayer funds to bail out. In February, DeMarco said he believed the two companies would never be in a position to repay the bailout.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us regulator torpedoes obama mortgage plan us regulator torpedoes obama mortgage plan

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us regulator torpedoes obama mortgage plan us regulator torpedoes obama mortgage plan

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Saudis clear passenger flights

GMT 08:38 2017 Saturday ,25 November

Saudis clear passenger flights
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today 'Trash islands' off Central America indicate

GMT 20:19 2017 Friday ,24 November

'Trash islands' off Central America indicate
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Heidy underlines works like “Seventh Neighbor”

GMT 13:59 2017 Thursday ,23 November

Heidy underlines works like “Seventh Neighbor”
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 07:53 2017 Friday ,24 November

To Debate Ethics of Euthanasia

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday