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Thursday, February 12, 2009

U.S. Considers Mortgage Subsidies for Some Homeowners

by Calculated Risk on 2/12/2009 03:27:00 PM

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.
...
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.
I need more details on the subsidies, but at least the dumb idea of buying down mortgage rates has apparently been shelved.