President Obama’s refinancing plan will be a boon to least 1 million homeowners. But there is fear that it doesn’t get at the root of the housing crisis. Easing refinancing rules for one-tenth of the nation’s homeowners whose mortgages are underwater is beneficial and assists to keep more folks in their homes. And it serves political interests as well.
But most argue that the hosing sector will not rebound until people regain confidence in the housing market and see homes as good investments again.
Also requiring lenders to reduce principal mortgage debt would speed up the recovery. But, bankers are not interested and their political clout remains as powerful as ever. Not to mention the back log of homes that they own and don’t even have on the market.