President Obama's New Housing Plan

 

President Obama says he's trying to help struggling homeowners by lowering their mortgage payments.

 

Posted: 5:59 PM Oct 25, 2011

Reporter: Rachel Markin

Email Address: rachel.markin@wbko.com

 

President Obama says he's trying to help struggling homeowners by lowering their mortgage payments.

 

But the proposed change for a selection of homeowners facing foreclosure is getting mixed reviews.

 

The President's plan gives those who owe more than their home is worth and have a mortgage from Freddie Mac or Fannie Mae the chance to get cheaper refinancing rates without jumping through as many hoops.

 

The owners must be making their monthly payments.

 

"I think they're loosening up some of the problems they have in the mortgage industry, the restrictions they have, they're gonna loosen that up and help it make is easier for everyone to get a loan for their housing," says Steve Davis.

 

Local Realtor Steve Davis talks about the plan.

 

"The thing I like about it is it's an effort to help us all recover," says Davis.

 

He says that for every four homes sold in the area one is foreclosed, a lower rate than the national average.

 

Economist Dr. Brian Strow says the new financing plan leaves responsible homeowners out in the cold.

 

"I would like it if they somehow lowered what I pay on my mortgage, I make my payments I'm not underwater, I was responsible when I put down equity on my house and I feel penalized," says Strow.

 

Strow says the program just doesn't help enough people.

 

"You're not helping people who are going to default, these are people who are making their payments, why are you giving them a break to people who in the sense aren't needing one?," Strow says.

 

The program's rules will be available November 15th.