November 11, 2008, Washington (JusticeNewsFlash.com)–Breaking news–The U.S. Government controlled mortgage finance giants Fannie Mae and Freddie Mac announce a broad new effort plan to reduce loan burdens of homeowners facing foreclosure. According to government officials people 90 days behind on their payments will be eligible. The goal is to reduce the interest rate so the monthly loan payment will be no higher than 38% of the borrower’s monthly income.
The U.S. Federal Deposit Insurance Corporation (FDIC) plan may help up to 300,000 families with their delinquent mortgage payments but will ultimately be absorbed by taxpayers. The heart of the nation’s foreclosure crisis involves mostly adjustable-rate sub-prime loans which are foreclosing at a rate of nearly 20% according to the Mortgage Bankers Association. The new government plan may apply to “conforming mortgages” which are far more conservative and generally separate from the bulk of the sub-prime loans causing America’s foreclosure crisis.
Heather L. Ryan, a reporter for JusticeNewsFlash.com a web site visibility medium offering lawyers, reporters and other professionals a forum to communicate news and information to consumers in their communities. Ms. Ryan specializes in topics including government health and law, national and world business litigation, Republican and Democrat financial fallout initiatives.