Maria Ny Designs Home
About Maria Ny Designs
Breaking News
Online Portfolio
Writing Samples

Contact Maria Ny

Breaking News Article

The following is an editorial on some news I saw today. I did some additional research on this and put together this article. Do you need a breaking news article or other content written? I can help you. All I need is a list of keywords you want to have in the content and a synopsis of what you want the page to be about. Contact me today.


Another Government Foreclosure Rescue Plan Announced

Once again, the government has offered another plan to help troubled homeowners. This plan focuses on Fannie Mae and Freddie Mac owned loans. Fannie and Freddie own or guarantee nearly 31 million U.S. mortgages, nearly six of every 10 outstanding. But they have far lower overall delinquency rates than other lenders — under 2 percent.

Sheila Bair, chairman of the Federal Deposit Insurance Corp. (FDIC), said the plan "falls short of what is needed to achieve wide-scale modifications of distressed mortgages."

With the government spending billions to aid distressed banks, "we must also devote some of that money to fixing the front-end problem: too many unaffordable home loans," Bair said in a statement.

Democrats on Capitol Hill aren't satisfied, either. "When the loan is chopped up into a million pieces and any investor can block a modification from happening, a program like this will only scratch the surface of the mortgage crisis," said Sen. Charles Schumer, D-N.Y.

Deutsche Bank estimates more than 80 percent of the $1.8 trillion in outstanding troubled loans have been packaged and sold in slices to investors worldwide. Most of those loans won't likely be helped by the new plan.

The rest are "whole loans," which are easier to modify because they have only one owner.

The new mortgage assistance plan was announced by the Federal Housing Finance Agency, which seized control of Fannie and Freddie in September, and other government and industry officials. It takes effect on December 15, 2008. Officials say they hope the new approach will become a model for loan servicing companies that collect mortgage payments and distribute them to investors. These companies have been criticized for being slow to respond to a surge in defaults.

A Step in the Right Direction
After more than a year of slow and weak initiatives, there now seems to be a serious effort among major retail banks to get at the heart of the credit crisis: falling U.S. home prices and record foreclosures.

Citigroup said Monday it is halting foreclosures for borrowers who live in their own homes, have decent incomes and stand a good chance of making lowered mortgage payments. It is also reaching out to about 500,000 borrowers to offer loan modifications. Borrowers don't have to be late on their mortgages to qualify. They just have to show that they are in danger of becoming late on their mortgage payments.

JPMorgan Chase & Co. last month expanded its mortgage modification program to an estimated $70 billion in loans, which could aid as many as 400,000 customers. The bank already has modified about $40 billion in mortgages, helping 250,000 customers since early 2007.

Starting Dec. 1, Bank of America Corp. plans to modify an estimated 400,000 loans held by newly acquired Countrywide Financial Corp. as part of an $8.4 billion legal settlement reached with 11 states in early October.

Maria Ny is a published author. She writes articles and website content on a variety of subjects including various types of mortgages, information on various law practice areas, FICO credit scores, search engine optimization and internet marketing, animals and instructional content. Visit www.marianydesigns.com to read more informative articles and to find out how she can help you with your web content needs.