The Obama administration is considering further actions to strengthen the housing market, but the bar is high: plans must help a broad swath of homeowners, stimulate the economy and cost next to nothing.I think the resistance from Fannie and Freddie can and will be worked out if the president so desires. And why wouldn't he? This is the equivalent of an $85 billion stimulus every year. Surely the president supports that.
One proposal would allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent, according to two people briefed on the administration’s discussions who asked not to be identified because they were not allowed to talk about the information.
A wave of refinancing could be a strong stimulus to the economy, because it would lower consumers’ mortgage bills right away and allow them to spend elsewhere. But such a sweeping change could face opposition from the regulator who oversees Fannie Mae and Freddie Mac, and from investors in government-backed mortgage bonds.
Alas, though, it's never that simple. If I recall correctly, the White House has tried numerous times to create some sort of refinancing effort for homeowners and never had much success. Besides that, anything that might spur economic growth and help out middle class America will most assuredly get blocked by Republicans in congress. Their goal is not to help middle America and certainly not to help this president. They are simply rooting for failure all around in hopes it ups their chances in taking back the White House next year. And if they do win, they still wouldn't dare support anything that might help middle America. Heck the last time they were in the White House, they had no problems bailing out the banks and the Wall St. fat cats. There's no reason to believe they'll do anything different if given another shot.
As far as their Hoping for Failure platform, it's sure not registering with the voters at all.
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