Obama Administration's New Plan for Mortgage Relief
AIR DATE: February 1, 2012
At his State of the Union address this week, President Obama rolled out some small details of new plan for mortgage relief. Under the plan homeowners with non federally backed loans will be able to refinance to take advantage of lower interest rates. Before, only loans backed by Fannie Mae and Freddie Mac were eligible for the Home Affordable Refinance Program (HARP.) Will it work? We talk with a panel of experts and take your calls on whether Obama's newest plan will help homeowners.
GUESTS Bill Uffelman, President and CEO, Nevada Bankers Association Michael Joe, attorney, Legal Aid Center of Southern NV Jim Puzzanghera, reporter, LA Times
Has anyone been told that their Fannie morgage was restricted?Having an excellent credit score the bank said we can't refinance because we have a resticted loan. The loan officer said about half of the loans are resticted for no particular reason. Seems like an arbitrary reason maybe to restrict refinancing if you have good credit.mary rabold –Jan 31, 2012 08:34:13 AM
First..Thank you KNPR for reminding me that I am not the last Las Vegas resident to be making payments on a home that I owe over 200K more on than it is worth. I love my home and will do everything that I can to hold on to it.
Second..We hear so much about the high unemployment numbers in Southern Nevada. Has it ever occured to our elected officials that if we felt secure about owning our homes, then maybe we would spend money (and create jobs)on them? Give me a mortgage that I know I can afford and I will hire a painter (interior and exterior), landscaper and plumber. My home needs new appliances, new window treatments, new flooring, etc, etc. But who wants to spend money on a home they do not know they will be able to hold on to? Do we want to stimulate the economy and create jobs? Southern Nevadans must feel that keeping their homes is a real option. Then we will invest money into them and stimulate our local ecomony. It is a win/win situation. Dianna –Jan 27, 2012 23:14:27 PM
born and raised in vegas, 48 yrs. our house foreclosed on last year. here's the truth, homeowners, homes prices are at 1960-70 levels. you are renting your home, we did too. if the monthly payment is too much , let the home go into foreclosure and live in your home rent free as long as possible. save your money if your are able( bury it)the money you save is all you'll ever get out of your house. the guest mentioned how our neighborhoods will change...a foreclosed property purchased by an investor and rented out, had the FBI swat team as early morning guests the other day...good luck everyone. do what's best for you and your family..housing prices may not recover for 30 years... it's fairly easy once you decide to let the house go, sure your credits shot for a short period, but, you'll be just fine...tommi –Jan 27, 2012 10:16:17 AM
I live in an upscale area of NW Las Vegas and have lived in my home for nearly 20 years. I am current on my mortgage but the home is worth less than it was when we moved in. In 2005 my home was appraised at $1.2 million and I would be lucky to sell it today for $375,000. I can't refinance because there is not enough equity to qualify. There are at least 5 homes in our gated community that are in some stage of foreclosure. I personally know of three homes that the homeowner has not made a payment in over 3 years, yet the owner not the bank still shows as the legal owner. One house was repoed by a big bank in July of 2010 and the former owner was still in the house 15 months later. No one is maintaining these homes. This situation will never get better until the banks step up and take possession of these homes. Until then these properties will continue to drag down property values until they are all owned by cash rich investors who will turn them into rentals. Just does not make sense.David –Jan 27, 2012 09:57:18 AM
Refinancing will help many underwater. Mortgage insurance drives payments up by hundreds of dollars and negates the benefits of a refi.Matilda Brown –Jan 27, 2012 09:51:03 AM
A great deal of damage has been done, and the first question is who caused it. The creation of artificial demand for houses by offering mortgages to unqualified buyers. "The Banks" offered these mortgages to resell them and pocket various fees along the way, "The Banks" are responsible for this damage.
This created the artificial demand that drove up prices, this created the over-supply that is now driving down prices. This created the enormous unemployment in the construction sector that is still damaging our economy.
What does it take to force "The Banks" to take responsibility for their actions?
ScottScott Swank –Jan 27, 2012 09:43:14 AM
I talked to a loan officer at Bank of America yesterday and was told the best rate I could get was 5.25% refinance for HARP 2.0 My credit rating is 860 I put 40% down on $540,000 home which Fannie Mac values at $224,000. My balance is $316,000. Never late or missed a payment Dennis –Jan 27, 2012 09:39:55 AM
The banks' decision to change the terms of individual home loans seems so arbitrary and vague. We have gone from "we can't talk to you until you miss payments" to "we mailed you an offer that maybe we will do maybe we won't. Sign on and see what happens in the next few months." To add to this frustration, banks reveal they need X amount of dollars at the very bitter end of the transaction or it falls through. It just feels like they want to tell government officials "We sent out 5 million offers to refinance..aren't we good," with no intention of helping their customer refinance to a sensible rate.Karen Samuelson –Jan 27, 2012 05:20:31 AM