Now that the HAMP mortgage modification program has officially been declared a failure by the TARP Congressional Oversight Panel, the Obama administration has begun negotiating with Fannie Mae, Freddie Mac and their regulator the Federal Housing Finance Agency (FHFA), to start a new program aimed at reducing loan balances of mortgages for underwater borrowers. The proposed program builds upon a Federal Housing Administration program, begun in September, to help underwater borrowers with current mortgages to refinance into more-affordable lower interest rate and small balance loans. FHFA is worried that this program could increases losses at Fannie and Freddie forcing the troubled mortgage giants who are already in conservatorship to need another infusion of taxpayer funds.
The next phase of the foreclosure crisis has begun . . . the litigation phase. To try to facilitate these suits, Rep. Marcy Kaptur (D-OH), yes the same Representative advocating for a federal land title study, tried last week and failed to direct foreclosure prevention funds to legal aid groups. Kaptur's bill to study a federal land title system is gaining few friends outside two of the House's more liberal members: Raul Grijalva (D-AZ) and Carolyn Kilpatrick (D-MI), both of whom signed up as co-sponsors of the bill.
You can help inform your Member of Congress about the dangers of this proposal. Please click on this link to tell Congress to protect the property recording system in the United States and oppose H.R. 6460.
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