The Obama administration yesterday sketched in the details of its most ambitious attempt to reduce foreclosures and stabilize the beleaguered housing market at the root of the economic meltdown.
The program has two key elements: a refinancing program for borrowers with little equity in their homes but current on their loans, and a $75 billion program to help reduce mortgage payments for struggling borrowers.
Several large lenders praised the program, including Bank of America and Wells Fargo. There were also converts among those outside the industry. “I was skeptical at first, but I think these guidelines are helpful in a lot of ways,” said John Taylor, president of the National Community Reinvestment Coalition, a nonprofit group that has been critical of industry efforts to modify mortgages.
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