Obama talks of housing plan during State of the Union Address

Obama comes forward with new “housing recovery plan” during the state of the Union address to the nation

Holding lenders accountable for making loans to unqualified borrowers is on the top of his list to address the problem created by lender’s offering risky sub prime loans in an “irresponsible” manner.

Colorado Realtors heard that part of his plan is creating a federal prosecutors unit (including state attorney generals) to increase the investigative process into lending practices that Obama states was “abusive”.

Lender “packaging of high risk mortgages” without disclosing the full consequence of such risk, is largely believed to be responsible for the severe loss of home ownership in the US today. This federal unit will supposedly have the power to speed assistance to those in trouble.

NAR President Moe Veissi stated ““REALTORS® believe that more must be done to stem the rising inventory of foreclosed homes and address the lack of available and affordable mortgage financing, which is inhibiting a meaningful housing market recovery.”

Colorado Realtors suggest that something more has to happen now to help the 7 million homeowners currently underwater. So far loan modifications, short sales and foreclosures are doing little to stem the bleeding. Obama did address that issue as well in his speech and we wanted to share that plan with the rest of the nation who might have missed it during his state of the Union Address to the nation.

Colorado Realtors fear that all that will really happen in this plan is the irresponsible spending of additional tax dollars with only a weak result – similar to what has happened in past government intervention plans such as HARP, HAMP and HAFA. Homeowners are still losing their homes, suffering the most in this debacle thru vehicles of foreclosures, loan modifications and the short sale process.

Where is this country headed in terms of the future of housing?

State of the union address to the nation…

State of the Union Address to the Nation housing plan