US politicians seem to be suddenly all in agreement that something must be done to help people avoid foreclosures. And no wonder, with so many Americans in trouble with their mortgages and upside down on their values they are looking to the government to do something to turn things around. At the heart of basically every foreclosure prevention plan is the FHA program. The most aggressive plan is coming from representative Barney Frank. Here is an excerpt from a recent article at the Christian Science Monitor:
But the most ambitious effort is unfolding in the House Committee on Financial Services, where Chairman Barney Frank (D) of Massachusetts is working up a comprehensive housing plan that aims to help 1.5 million families stay in their homes. The proposed bill, which is expected to be taken up in committee next week, gives the FHA authority to guarantee up to $300 billion in refinanced loans, if the lenders agree to reduce the outstanding principal on those loans.
“The FHA is the only agency in the federal government that can go into crisis mode and quickly help hundreds and thousands of people,” says committee spokesman Steven Adamske.