About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Mortgage Financing Programs News

Here is the relevant segment from a report at cnnmoney.com

Easing the housing crisis. The economic stimulus package proposed by House leaders also includes two housing measures intended to make it easier for consumers to obtain mortgages or refinance expensive subprime loans.

In his State of the Union address, Bush pushed for three other housing measures, noting that “these are difficult times for many American families, and by taking these steps, we can help more of them keep their homes.”

First, he reiterated his call to reform Fannie Mae and Freddie Mac, which guarantee the purchase and sale of home mortgages in the secondary market.

Both Fannie and Freddie have been plagued by accounting scandals, and reform would subject them to more stringent regulation. But Democrats and Republicans disagree over just how the oversight rules should be changed and also over the inclusion of unrelated elements in the reform bill.

He also called on Congress to modernize the Federal Housing Administration (FHA). The FHA loan program is intended for home buyers and home owners with weak credit. FHA reform would lower down payment requirements, increase the cap on loans eligible to be FHA-insured and lower origination fees, among other things. The House and Senate each passed versions of FHA reform in 2007.

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