Obama to announce actions on housing, student loans

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Most student loans carry an 8.25% interest.

Will those burdened with high-interest student loans and mortgages finally get a break?

President Barack Obama will announce a series of actions this week for those struggling under student loan and mortgage debt in yet another move to help America’s economy. His plan does not require congressional approval. A White House official stated part of the president’s plan includes an initiative to make it easier for homeowners to refinance their mortgages.

 

Burden of student loan

 

President Obama faces significant resistance from Republicans to his $447 billion jobs package that he urged Congress to pass.

The president will unveil his first initiative during his three-day trip to western states beginning Monday. He will discuss changes in mortgage rules at his stop in Nevada, a state which has one of the hardest-hit housing markets in the country.

The Obama administration has been working with the Federal Housing Finance Agency (FHA), regulator for Fannie Mae and Freddie Mac, to find ways to make it easier for borrowers to switch to cheaper loans even if they have little to no equity in their homes.

The FHFA intends to loosen the terms of the two-year-old Home Affordable Refinance Program (HARP), which helps borrowers who have been making mortgage payments on time but unable to refinance as their home values dropped during the Recession

The Wall Street Journal reports that the changes should boost refinancing. President Obama’s plan may help banks avoid the risk of any “buy-back” on a HARP mortgage as long as borrowers made their last six mortgage payments and prove they have a job or another source of passive income.

They are also set to reduce loan fees that Fannie Mae and Freddie Mac charge and waive fees on borrowers that refinance into loans with shorter terms, the Journal said.

Pricing details are expected to be published in mid-November. Lenders could begin loan refinancing under the new program as soon as December— the newspaper reported, citing federal officials. The report indicates that loans which exceed the current limit of 125% of the property’s value cannot participate in the proposed program until early next year.

President Obama will announce a student loan initiative in Denver on Wednesday. The only way we can truly attack our economic challenges is with bold, bipartisan action in Congress Director Dan Pfeiffer, White House Communications Director, told The New York Times.

The president will continue to pressure Congressional Republicans to put country before party and pass the American Jobs Act, but he believes we cannot wait, so he will act where they won’t.

If you or your child plan to borrow a student loan to pay for college, consider the following pitfalls listed by CBS in 7 Things They Don’t Tell You About Student Loans.


Mad Mike’s America thanks Reuters.


How will President Obama’s action on your mortgage and student loan affect you?

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Dorothy Anderson

I want to know what you think and why, especially if we disagree. Civil discourse is free speech: practice daily. Always question your perspective.
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12 years ago

rEally the only fixed rate student education loans obtainable tend to be government loans, and in many cases those people can transform determined by government legislation. nOnetheless, in order to now you should your interest rate, a person …

12 years ago

I want to know what you think and why, especially if we disagree. Civil discourse is free speech: practice daily. Always question your perspective.

I just saw this. Well, I think it is wrong to kill animals for pleasure. While I don’t condemn any carnivore, I think our processing of “meat” in America is morally criminal and because of it we should outlaw the processing of live animals or the killing them to suit our needs.

Some argue that barbarism is necessary for our survival, so it is not barbarism. I think they are a tad barbaric.

They believe I think I am better than them, which is simply not true. I am more ethical, more compassionate, and more circumspect, but so far as I know, some of them can juggle four bowling pins, and I cannot do that. Better than them, nah.

12 years ago

Obama faces a two-fold problem. First, the other Party wants him to fail and that is the most important plank in their platform.

Additionally, they legitimately disagree with most of what he wants to do.

With those two forces against him, he basically cannot try to introduce plans that are good for the country. He has to do what works, which is very little. Even if he wins the next election, if the Republicans keep Congress we are doomed for a while, and he is just wiggling like a squashed bug who doesn’t know what else to do.

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