About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
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Another interesting article came out recently over at CNNMoney.com. It highlights comments from officials at the Fed. Here are some highlights:

NEW YORK (CNNMoney.com) — Two Federal Reserve officials said Friday that the housing market could damage the economy even more severely than it has already if measures are not taken to correct it.

In speeches at the U.S. Monetary Policy Forum in New York, Eric Rosengren, president of the Federal Reserve Bank of Boston, and Frederic Mishkin, a member of the Federal Reserve board of governors, spoke about the critical nature of the housing market crisis.

“Further declines in housing prices could depress residential investment, reduce consumer spending, generate elevated foreclosures, and contribute to financial instability,” said Rosengren.

“Taking appropriate monetary, regulatory, and fiscal actions to mitigate this risk seems prudent.”

As mortgage rates continue to decline, he said that foreclosures and unemployment should come down with them. He also said that as borrowers shy away from risky subprime loans, they should instead look into FHA loans – home mortgages that allows for a purchase or refinance with a low down payment.

“Examining how FHA programs could continue to be modernized and streamlined and become a more viable choice for borrowers may be an important mitigant for housing problems,” said Rosengren

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