Washington Post (04/10/08) P. D1; Montgomery, Lori; ElBoghdady, Dina
FHA Commissioner Brian Montgomery announced a plan on April 9 that would allow subprime borrowers who have missed a few mortgage payments to refinance through the agency. Approximately 100,000 borrowers would be assisted by the program, which also would urge lenders to write down the mortgage debt in accordance with home-price declines. To qualify, borrowers who missed three payments in the last year would need 10 percent equity; and borrowers who missed two payments would need 3 percent equity. While consumer groups criticize the plan for failing to help a larger segment of homeowners facing foreclosure, Democrats note that it indicates the White House understands that a more aggressive stance is needed to ease the housing crisis.
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