The housing plan President Obama unveiled today could directly help up to 9 million people -- but indirectly, it will help all of us.
"In the end, all of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to continue to deepen," President Obama said today in Phoenix, AZ
. "But if we act boldly and swiftly to arrest this downward spiral, every American will benefit."
He laid out the four key elements of the Homeowner Affordability and Stability Plan:
- refinancing help for four to five million homeowners who receive their mortgages through Fannie Mae or Freddie Mac
- new incentives for lenders to modify the terms of sub-prime loans at risk of default and foreclosure
- steps to keep mortgage rates low for millions of middle class families looking to secure new mortgages
- additional reforms designed to help families stay in their homes
"The plan I’m announcing focuses on rescuing families who have played by the rules and acted responsibly," the President said, "by refinancing loans for millions of families in traditional mortgages who are underwater or close to it; by modifying loans for families stuck in sub-prime mortgages they can’t afford as a result of skyrocketing interest rates or personal misfortune; and by taking broader steps to keep mortgage rates low so that families can secure loans with affordable monthly payments."
We've put together a few documents that will help you understand the plan, how it will work, and how it will affect you: