by Calculated Risk on 2/12/2009 03:27:00 PM
Thursday, February 12, 2009
U.S. Considers Mortgage Subsidies for Some Homeowners
From Reuters: Obama eyes home loan subsidies in rescue plan: sources
The Obama administration is hammering out a program to subsidize mortgage payments for troubled homeowners who have gone through a standardized re-appraisal and affordability test ... Under the plan being mulled, homeowners would have to make a case of hardship to qualify for new loan terms.I need more details on the subsidies, but at least the dumb idea of buying down mortgage rates has apparently been shelved.
...
Housing policymakers weighed but have for now shelved one plan that would have seen the government stand behind low-cost mortgages of between 4 and 4.5 percent, sources said.