Obama to Reveal New Mortgage Refinancing Plan Today
President Obama is set today to propose a new mortgage refinancing plans for borrowers who are current on their mortgages. The president’s plan would allow mortgage holders to get a lower-interest federally-insured loan even if their current mortgage is underwater…
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President Obama is set today to propose a new mortgage refinancing plans for borrowers who are current on their mortgages. The president’s plan would allow mortgage holders to get a lower-interest federally-insured loan even if their current mortgage is underwater or if they are unable to get a loan from a private lender.
The program could cost up to $10 billion, which Obama proposes to pay by imposing a tax on banks. Congressional Republicans oppose any such tax, so the plan may be dead before it is even officially announced.
Another objection to the plan is that current mortgage bond holders would be paid off early, thus lowering their returns. That argument may not be made to loudly because there are many more mortgage holders than bond holders — and 2012 is an election year.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
