Obama Proposes New Government Guarantee For Homeowners To Refinance

[WestVirginiaRebel]

Fox News:

The nation's housing crisis is damaging not only the U.S. economy, but also what it means to be middle class in America, President Obama said Wednesday, urging Congress to allow new federal loan guarantees for homeowners looking to refinance.

Saying that he is issuing administrative maneuvers for a "homeowners bill of rights" and other means to investigate and prevent abuses in the mortgage industry, Obama told an audience in Falls Church, Va., that he wants the Federal Housing Administration to guarantee refinancing for families who are current on their mortgages.

"It is wrong for anybody to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom," Obama said in a subtle jab at Mitt Romney, who has suggested the market should be allowed to run its course.

Claiming that under his refinance plan, households could save up to $3,000 a year on their payments, Obama also offered a heavy dose of criticism for Congress and the banks that loan money for mortgages.

He said he wants a "homeowners bill of rights" that would be a single set of standards to make sure borrowers and lenders play by the same rules. Obama said the bill of rights would compliment the work approved by the Consumer Financial Protection Agency.

"Now that our new consumer watchdog financial agency is running at full steam, now that Richard Cordray is in as the director of the Consumer Finance Protection Bureau, they're moving forward on protections like this," he said.

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He's doing it for the homeowners...those that are still left, anyway...