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The Congress Makes Some Changes On The Home Mortgage Aid Program

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By : John Cutts    99 or more times read
Lawmakers desire to make some changes in the home mortgage aid program which should supposedly aid thousands of borrowers and prevent them from losing their homes, but less than 500 applications and merely two-dozen homeowners have been helped so far.

The committee on House Financial Services shall consider the changes as both President Barack Obama and the Congress improve the most crucial steps so far to boost up the crippling housing market. Moreover in the following week, Timothy Geithner as the Treasury Secretary will reveal a new approach to help borrowers and save the crashing financial industry.

The administration wants to use as much as $100 billion for financial bailout money in order to prevent borrowers from leaving their homes. The Republicans are also expected to vote on a proposal to let the government decrease home mortgage rates to 4 percent.

In 2008, programs such as Home for Homeowners were created by Congress were assumed to permit 400,000 worried homeowners to change their risky home loan mortgages for the standard 30-year fixed loan rates with reduced rates. However, out of 451 applications, only 25 home loan mortgages were approved ever since the program began in October. This was regardless of over 66,000 calls from consumers and lenders to the Federal Housing Administration.

In a bill being deliberated through the House committee, a number of constraints on the home mortgage aid program would be revoked so that more people would qualify and the fees would be reduced.

Still, some believe that the changes are not enough. According to a consumer group called the National Community Reinvestment Coalition, the administration should purchase the troubled home mortgage loans by bulk and adjust them so that borrowers can stay in their homes. The administration agrees that this can help stop the financial crisis, even though it may infuriate those opposing to subsidize these delinquent borrowers.

According to Robert Litan of the Brookings Institution, it is impossible to get rid of all foreclosures, but the administration can definitely keep that amount from becoming uncontrollable. In doing so, says the liberal-leaning think tank, decreasing some of the losses next to the securities that are forcing the banks under.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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