President Barack Obama will again try to fix the nation’s housing crisis, preparing to announce new rules to ease refinancing for homeowners with little or no equity.The New York Times reported, citing an administration source, that Obama will promote “new rules for federally guaranteed mortgages so that more homeowners — those with little or no equity in their homes — can refinance and avert foreclosure.”
Obama is expected to highlight an effort to allow homeowners with federally-backed loans to refinance their homes above 125 per cent of its worth — a rules change under consideration by the independent Federal Housing Finance Agency.
Obama’s first foray into fixing the housing market, the Home Affordable Refinance Program, has only serviced about 25 per cent of the people it was intended to help.
The FHFA said in September that there are several challenges to raising the loan-to-value limit ceiling in the HARP program along the lines Obama is expected to announce.
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