Charles McMillan, president of the National Association of Realtors, said, “Hope for Homeowners, was designed to help families refinance into safer, more affordable mortgages, in many cases helping those families avoid a devastating foreclosure.

 

Despite being well-intentioned, the Hope for Homeowners program has had limited success. Lenders have found the program difficult to participate in because of many of the program’s constraints.”

The changes would lower participation standards, and cut costs for lenders and borrowers.

Massachusetts Rep. Barney Frank told the House Financial Services Committee, “There have been a series of trials and errors here,” in the efforts to fix the program.

A third provision would make permanent the temporary increase in FDIC bank depositor insurance from $100,000 to $250,000 per account.

The legislation is expected to be considered by the full House next week.

Austin Kilgore | 02.05.09 www.dsnews.com