| Wagner |
06-23-2009 08:49 AM |
Plan for mortgage relief, just a whole lot of fluff.
Obama refis: Slow out of the gate - Jun. 22, 2009
Quote:
Only 13,000 Obama refinancings have been completed during the first three months after the program's launch, the MBA said Monday. Policy makers originally projected that 4 million to 5 million mortgage borrowers would take advantage of the program over the next year.
The Obama plan targets borrowers with loans guaranteed or owned by mortgage giants Fannie Mae and Freddie Mac, and it enables them to qualify for refinancing into a lower rate if their balances are too high relative to their home values.
But the MBA is skeptical that the number of refinancings under the Obama plan will ever hit projections.
"While the number of loans completed under this program is likely to increase," said Jay Brinkmann, chief economist for the MBA in a release announcing the lowering of origination estimates, "it is difficult to craft a scenario under which origination volumes would come anywhere close to reaching the numbers originally envisioned for the program, particularly under our higher rate environment."
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