Mining for gold Mortgage rates

The government’s mortgage relief plan, announced by President Barrack Obama a year ago, has helped only about 12 percent of the borrowers. Since its initiation, around 1 million homeowners started the process, but only 116,000 completed the application process and had their loan payments reduced permanently. More than 61,000 applications were rejected, either because the homeowners failed to make payments or didn’t return the necessary paperwork.

Figures clearly demonstrate its performance – a complete failure. However, treasury officials say the program is on track. They further said that the program is doing the job it was designed to do. Struggling families are receiving funds and the housing market is showing signs of stabilization.

Nearly one in every three homeowners with a mortgage owes more to the bank than their property is worth. Maybe the government could do more to encourage banks to cut borrowers’ principal balances on their primary loans. But such a move could set off a repercussion from critics who claim it is unfair to people who are still paying their mortgages on time.  How can the government alter its conditions to make this plan more beneficial to large number of borrowers? Please provide your views and ideas.

Tags: government mortgage plan, home loans, home mortgage, mortgage, Mortgage Industry

This entry was posted on Tuesday, March 2nd, 2010 at 10:53 am and is filed under Mortgage Industry, Press Release. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.