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The Obama administration funded the
Home Affordable Refinance Program, Home Affordable Modification Program, Hope for Homeowners and now the
Emergency Homeowner Loan Program. Most of these tax-payer funded mortgage-bailout programs failed miserably. However, the
Home Affordable Refinance Program,initiatve did help underwater homeowners with 125%
mortgage refinancing , but only a small percentage of homeowners met th Fannie Mae and Freddie Mac loan requirements. Rates on fifteen-year loans dropped to 3.92% this week and the thirty-year rates fell to 4.44%. Nationwide reported that economist have forecasted that approximately 20 million homeowners will have an underwater mortgage at some point in 2011. The Fed announced this week they it would use the proceeds from Fannie Mae and Freddie Mac portfolio of mortgage-backed securities to purchase government debt.
FHA refinancing requirements are getting more difficult for the average borrower as HUD is said to be tinkering with a minimum credit score of 500. Lenders are bracing themselves for tighter FHA guidelines in the coming year as HUD moves to rebuild the reserves for the FHA insurance premiums. Read the original article online > Relief for Refinancing with Short Refinance and Emergency Homeowner Loan Programs
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[...] Obama Mortgage Relief – There are certainly two sides to the foreclosure prevention initiatives that Obama has backed, as thousands of homeowners credits HAMP for helping them avoid foreclosures. Meanwhile, millions of homeowners are currently stuck in the loan modification process for six months to a year on average, because lenders are unable to facilitate the high demand of loan relief. [...]