Affordable Housing, Announcements, Community Development, Federal News

Obama Outlines Housing Plans; Nat'l Housing Trust Fund Included

 

In a speech on February 1, President Obama outlined his plan to address the nation's continuing housing crisis. Included in this plan (under item #6) is a proposal to include $1 billion in mandatory funding in 2013 for the Housing Trust Fund to finance the development, rehabilitation and preservation of affordable housing for extremely low income families.

The President's plan would include the following:

1. Broad based refinancing that would allow borrowers who are current on their payments to refinance.  It would:

  • Provide access to refinancing for all non-GSE borrowers who are current on their payments and meet a set of simple criteria.
  • Streamline the refinancing process for all GSE borrowers who are current on their loans.
  • Give borrowers the chance to rebuild equity through refinancing.

2. Homeowner Bill of Rights, which would include a single set of standards:

  • Access to a simple mortgage disclosure form.
  • Full disclosure of fees and penalties.
  • Guidelines to prevent conflicts of interest.
  • Support to keep responsible families in their homes and out of foreclosure.
  • Protection for families against inappropriate foreclosure, including right of appeal.

3. First Pilot Sale to Transition Foreclosed Property into Rental Housing. 

  • The FHFA, in conjunction with Treasury and HUD, will conduct a pilot sale of foreclosed properties to be transitioned into rental housing.

4. Forbearance for Borrowers Looking for Work.

  • Following the Administration’s lead, major banks and the GSEs are now providing up to 12 months of forbearance to unemployed borrowers.

5. Pursuing a Joint Investigation into Mortgage Origination and Servicing Abuses

  • New resources will beused to investigate misconduct that contributed to the financial crisis.

6. Rehabilitating Neighborhoods

  • The administration proposes investing $15 billion in Project Rebuild, a national effort to put construction workers on the job rehabilitating and refurbishing hundreds of thousands of vacant and foreclosed homes and businesses.  Additionally, the Administration's budget will provide $1 billion in mandatory funding in 2013 for the Housing Trust Fund to finance the development, rehabilitation and preservation of affordable housing for extremely low income families.

7. Reducing Foreclosures

  • The Obama administration will expand eligibility for HAMP to reduce additional foreclosures and increase incentives for modifications that help borrowers rebuild equity.

Read more about the President's February 1 speech here and click here for a fact sheet with more details on the Administration's housing plan.  

 
 

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