Updated: Housing Update: More Details Released…

UPDATE: Treasury increases commitment to Fannie and Freddie from $200b to $400b, now they each get 200 billion..

Obama Housing plan will establish a 10 billion insurance fund to ‘discourage foreclosure’

Treasury will establish uniform guidance for mortgage modifications…all future recipients of TARP money REQUIRED to implement loan modification plan

CNBC Steve Liesman breaking it now…

According to Treasury plan includes: Plan to help 4-5 million homeowners refinancing plan

ADDITIONAL PLAN THIS IS NEW!!: Treasury to help fund principal writedowns?? need details there..more than expected

75 billion  homeowner stability initiative to reach an additional 3-4 million at risk homeowners supporting low interest rates by increasing confidence in Fannie and Freddie…

Homeowner Stability Initiative aimed at those who ‘commit to making reasonable monthly mortgage payments’..

Obama plan promises, “no aid for speculators”..

Aimed to help households ‘at risk’ who are current in payments..

Many incentives built into the plan for servicers and lenders to get on board says Steve…

Lenders under Homeowner Stability Initiative will bring down payments to 38% of borrowers income TOLD YA!! That is Sheila Bair’s plan right there…THEN the government would match further reductions down to 31% of the borrowers income…

a low interest rate must be in place for 5 year after which it can gradually be raised to market rates, UH OH THAT IS A TEASER NO NO NO!!!! WTH do they want more ARMS this will lead to waves later, oh good gawd!!!

Treasury will share in the cost of reducing principal on mortgage, need details there!!

Incentives:  Servicers receive $1000.00 upfront fee for each modification and success fees for keeping borrowers current, 1k a year for 3 years.

additional fees for servicers who get mortages modified before default….

February 18, 2009. Tags: Barack Obama, Congressional Leadership, Foreclosure Mitigation, Foreclosures, HOLC, Housing, Keep Me Hangin On, Kim Wilde, Mo Mod, Mo Mods, mortgage rates, Obama Administration, Politics, Sheila Bair, TARP, TIMOTHY GEITHNER, Wall St. Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Uncategorized, Unemployment Statistics, Wall St. 1 comment.