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October 24, 2011 in Nation/World
Obama to promote new steps to help housing woes
WASHINGTON — Seeking to circumvent congressional opposition, President Barack Obama will promote a series of executive branch steps aimed at jumpstarting the economy this week, beginning with new rules to make it easier for homeowners to refinance their mortgages.
The White House said changes to the two-year-old Home Affordable Refinance Program will help homeowners with little or no equity in their houses refinance by cutting the cost of doing so and removing caps to give deeply underwater borrowers access to the program. The new rules apply to homeowners with federally guaranteed mortgages who are current on their payments.
Obama will discuss the initiative during a meeting with homeowners today in Las Vegas, a city hard hit by foreclosures and sagging home prices. One in every 118 homes in the state of Nevada received a foreclosure filing in September, according to the foreclosure listing firm RealtyTrac.
With the president’s jobs bill struggling in Congress, the White House is refocusing its efforts on steps Obama can take to address the nation’s economic woes without getting lawmakers’ approval. In addition to the refinancing program, the White House said Obama will also announce executive action later this week to help students better manage their student loan payments.
The new push comes with a fresh catchphrase as the White House tries to push Republicans into action: “We can’t wait.” It’s Obama’s latest in a string of slogans aimed at blaming GOP lawmakers for lack of action on the economy.
White House communications director Dan Pfeiffer said that while executive actions are no substitute for Congress passing elements of the jobs bill, the economy requires action now.
“When Congress won’t act, this president will,” he said.
GOP leaders counter that the sluggish economy and stubbornly high unemployment rate are the result of Obama administration policies that have failed, including the 2009 stimulus package and financial regulation bill.
“They got everything they wanted from Congress the first two years. Their policies are in place. And they are demonstrably not working,” Senate Minority Leader Mitch McConnell, R-Ky., said Sunday.
Last month, Obama announced a $447 billion jobs plan, filled with tax increases on the wealthy and new spending on education, infrastructure and aid to state and local governments. Efforts to pass the full measure were blocked by Senate Republicans, who see the president’s proposal as a second stimulus.
That’s left Obama and his Democratic allies pushing lawmakers to pass the bill in individual pieces, though the fate of most of the measures remains unclear.
White House economic adviser Gene Sperling said the president considered including an expansion of mortgage refinancing in his jobs bill, but felt the changes could be implemented more quickly through executive action.
The changes to the so-called HARP program will be implemented by the independent Federal Housing Finance Agency. At its core, the initiative will relax eligibility standards, allowing those who are 25 percent of more underwater on their mortgages to take advantage of loans with lower interest rates.
The administration is also extending the program through the end of 2013. The program was originally slated to end in June 2012.
The federal refinancing program only covers mortgages created before June 2009 and owned or backed by government-controlled mortgage buyers Fannie Mae and Freddie Mac. Borrowers also must be current on their payments.
When the program began in 2009, administration officials hoped at least 4 million Americans would take advantage. But as of August, about 894,000 homeowners had refinanced their mortgages through the program.
White House officials said they had no estimates for how many homeowners would be eligible for refinancing under the new rules or how many might take advantage of the program.
“However many homeowners are going to be helped by this, they will be very grateful for the assistance that will allow them to refinance at today’s low rates,” White House spokesman Jay Carney told reporters aboard Air Force One. He indicated the president would take additional executive actions this year if Congress fails to act on elements of his jobs bill.
Following his events in Nevada, the president will travel to Los Angeles for two fundraisers for his re-election campaign, including one at the home of movie stars Melanie Griffith and Antonio Banderas. Obama will also make stops this week in San Francisco and Denver.
© Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Stocks plummet as outlook in Europe dims 
Hunterman on October 24 at 11:45 a.m.
Just watch- The 1 percenter republicans will fight against this, too.
dukkandpooh on October 24 at 12:19 p.m.
As will the poorer Fox News crowd.
misjustice on October 24 at 12:20 p.m.
Oh, oh! The Unitary Executive strikes back!
ManleyPointer on October 24 at 12:22 p.m.
Hello? Separation of powers??
Charlie on October 24 at 12:27 p.m.
Wasn’t a housing fix in the package that was passed in 2009? It failed before and will fail again. It’s the “economy stupid” just like James Carville said to Clinton.
jddavis on October 24 at 12:52 p.m.
“Seeking to circumvent congressional opposition…”
“…the White House is refocusing its efforts on steps Obama can take to address the nation’s economic woes without getting lawmakers’ approval.”
I don’t care who you are or what the subject is, this should be of great concern to you!
johnclarke on October 24 at 12:56 p.m.
This action is within the Executive Branch’s authority. The Congress can go hang. They don’t have problems making their mortgage payments.
The HAMP is something I’ve taken advantage of, and guess what? It works perfectly. However in other cases I ran into banks adding their own “overlays” aka rules to slow this process down or defeat it. Why? they don’t make a ton of money on the streamlined process.
Hunterman on October 24 at 1:05 p.m.
jd- what is of great concern to me is congress being more concerned with scoring political points than fixing problems. I am certianly more conservative than Obama but this attitude of demonising him makes me sick.
jddavis on October 24 at 1:26 p.m.
Hunterman—I agree with you. However, I see the problem as both the Senate and House of Congress, AND the Executive Branch.
The thing about his idea(s) to bypass Congress is that no money can be spent on his plan(s), because Congress has to approve spending. So with that in mind, this whole scheme by Obama is nothing more than political BS.
Mayocynic1 on October 24 at 1:35 p.m.
Isn’t this what got the US economy in trouble in the first place? People who don’t qualify owning homes? Somebody has to pay for this. A
It looks like another Obama vote getting ploy. Not sure we can withstand another git like this. Grave concern. Looks like an FDR move from the late 30s that recrashed a recovering economy.
oneanddone on October 24 at 4:27 p.m.
Face it. This is just Oboy wanting to buy votes. Same as what Chavez does in Venezuela. If the Feds had stayed on the sidelines in 2008 we be far better off by now, on our way to a real recovery.
detroitdude on October 24 at 4:39 p.m.
Yeah, Obama is fundraising, campaigning for re-election…you mean a GOP counterpart would not be doing the very same thing?
I think Obama SHOULD do whatever he can, within his executive authority to provide a spark to this economy and help to homeowners. He brought a jobs plan, that while making sense, cannot pass due to GOP/Tea Party obstruction.
Please…call him a socialist once more for me. You are learning, just like on Sesame Street, to repeat what you are told enough times.
tobiasg on October 24 at 4:49 p.m.
oneanddone said
Despite the obvious attempt of pointing out his race in a cute way, what is wrong with “buying votes?” Isn’t that what being a good politician is? To represent their constituency? I realize that’s not how the GOP does things but I’d rather have a President that works for me, not for big corporate interests.
force_vector on October 24 at 5:30 p.m.
“I realize that’s not how the GOP does things but I’d rather have a President that works for me, not for big corporate interests.”
You don’t seriously believe this, do you? Do you really think this man works for “you”? Do you really think he gives a crap about “you”? Or that any other politician does, for that matter? Good grief. Yeah, he’s campaigning with his “ideas”, no doubt. Sure, they’ve been tried before and didn’t work, but what the hell, let’s try again. But don’t for one second think this bs is going to help you, or anyone else. It is designed to win a re-election, and nothing more. If you fall for this, you deserve what you get.
Use your brain. If you’ve liked the way the last few years have gone, vote for the guy. If you don’t, hope for a better alternative. But don’t be an idiot and fall for these easy and cheap political tricks to buy your ideological favor. I mean, I have guns, Perry likes guns, guess I should vote for Perry, right? He’s done horribly identifying a single issue with which he has a comprehensible alternative solution for. But, he’s got guns. Does that make sense to you? Didn’t think so.
bdr on October 24 at 6:23 p.m.
I’ll suggest a new mortgage plan for Mr Obama.
Take democrat money to refinance underwater homes then place the payment plan (not under Fannie or Freddie) but Rework the paychecks and retirement fund for all 538 reps 100 senators, 435 house of reps to receive paychecks from this mortgage plan.
If housing fails all 538 go aloof with no paycheck or medical.
tobiasg on October 24 at 7:05 p.m.
Force vector, you’re seriously sick in the head and need to chill out. Talk about ideas that don’t work and have been tried before, pretty much EVERY plan the GOP has.
Start responding with a little respect instead of acting like a jerk.
force_vector on October 24 at 8:44 p.m.
If being a “jerk” is tantamount to calling you out for your illogical, poorly thought out statements, then guilty as charged. Honestly, I’m sick and tired of people such as yourself who own the patent on ideological, knee-jerk reactions to everything. No one is above criticism. No one is gods gift to the country. The sooner everyone stops pretending that any D or R is such, the better off we’ll all be. If it’s a battle between the lesser of two evils, how do you so instinctively assume that your chosen evil is better than any other? That your evil is looking out for you?
Dazzeetrader1980 on October 24 at 9:15 p.m.
Been away for a few days…funeral.
Meanwhile, Tobi’s problem is that he cannnot think straight on some days. I do pray for him though….let’s hope he gets back on those psychotropic meds:)
I do NOT want to pay for anyone else’s house like this Obama loser wants. I do not want to pay for anyone else’s things. I do not want to give away money. Tell those who want things they don’t earn that they are losers.
Live by those principles and you’ll be fine America.
tobiasg on October 24 at 11:44 p.m.
force_vector, your approach is very untactful and you come across as an a-hole so you get what you get in return.
RichardF44 on December 13 at 1:58 a.m.
Why not take those who are behind on their mortgage and force banks to restructure the mortgage. Don’t spend money to refinance but instead restructure for a longer period, beyond 30 years at homeowners current rate. Then focus on getting economy healthy. Once economy is healthy then homeowner can spend their own money to refinance for lower interest/less years etc. I have no sympathy for someone who bought a home they could not afford and now take out payday loans online to provide payments on time. I do have sympathy for those who fall behind because of jobs loss etc.