On Friday, President Bush shared his economic plan with the nation. Much to the disappointment of the National Association of Realtors (NAR), the plan offered no new housing initiatives. Inman News reports on the old housing initiatives Bush has already asked for, but didn't really allude to in Friday's economic plan:
So far, the Bush administration's efforts to revive the housing market have centered on two areas: FHASecure, a new FHA loan guarantee program that allows some delinquent borrowers with adjustable-rate mortgages to refinance into fixed-rate loans, and the voluntary "HOPE NOW" initiative in which loan servicers are attempting to reach out to troubled borrowers and, where possible, refinance or restructure their loans rather than foreclosing on their homes.
Critics say the new FHASecure loan program and HOPE NOW efforts won't help many of the 1.8 million homeowners facing interest-rate resets this year and next, and that falling home prices will make it harder for many borrowers to refinance.
The main hope for NAR was to raise the conforming loan limits so that homes of up to $625,000 could be considered eligible to be bought by federally insured Fannie Mae and Freddie Mac.
While the Bush economic plan, which focuses heavily on tax rebates, may spur consumer spending, it is unlikely to help prevent foreclosures or stymie the subprime lending crisis.
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