RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Op Ed: Executive Action to Ease Foreclosure Crisis?

Home Consumer
October 16, 2011
Reading Time: 2 mins read

(MCT)—The following editorial appeared in the San Jose Mercury News on Wednesday, Oct. 12:

The easiest and most effective economic stimulus the Obama administration could accomplish doesn’t require an act of Congress. Executive action could change the rules to allow responsible homeowners with underwater loans to refinance at today’s rock-bottom interest rates, stemming the tide of foreclosures that is crippling recovery across the country and hitting California harder than any other state except Nevada.

Recently, a rare bipartisan contingent of the U.S. Senate—with Democrats including California’s Barbara Boxer and Republicans from Massachusetts, North Carolina and Georgia—urged the president to act. His jobs bill has the proverbial snowball’s chance of survival in the House, and if any of it does get through, it will only be after endless partisan posturing. Putting new mortgage financing rules in place could have a nearly instant effect.

It would give hope to families now thinking about abandoning their homes, not because they can’t make the high payments but because it doesn’t make financial sense to do so. Millions of borrowers could benefit. And it would give hope to regions like California’s Central Valley overwhelmed by foreclosures, which have the effect of further undermining home values in general and accelerating the downward economic spiral.

Banks and Wall Street lit the fuse of this economic disaster, but housing is the industry that was most devastated. Many business leaders believe the nation can’t really recover from the last recession, let alone avoid a double-dip, unless the housing market stabilizes. Obama has this in his power.

The change in rules would help only borrowers who have kept up their mortgage payments, not gone into default. Many of them now have loans at well over 5 percent when current rates are under 4 percent, an all-time low. In their letter to top administration officials Tuesday, the senators say there are nearly 19 million loans guaranteed by Fannie Mae and Freddie Mac that could benefit from a refinance nationwide.

The difference could mean $2,000 a month to many families, Obama himself said in his speech to Congress in September. It’s money people could spend on consumer goods and services, but more than that, it could enable more families to stay in their homes and bring more stability to society.

Collectively, the ongoing pattern makes it impossible to build confidence in a recovery and to stimulate individual and business spending, which is what will actually fuel a recovery.

©2011 the San Jose Mercury News (San Jose, Calif.)

ShareTweetShare

Related Posts

Lone Wolf Technologies Announces New Integration with Follow Up Boss
Agents

Lone Wolf Technologies Announces New Integration with Follow Up Boss

October 29, 2025
Powell
Industry News

Fed Cuts Rates by Quarter Point, Again; No Significant Mortgage Rate Changes Expected

October 29, 2025
Brokers Invited to ‘Growth Through Acquisitions’ Event Hosted by Anthony Lamacchia
Industry News

Brokers Invited to ‘Growth Through Acquisitions’ Event Hosted by Anthony Lamacchia

October 29, 2025
Better
Agents

Better Homes and Gardens Real Estate Announces Coachella Valley Affiliation

October 29, 2025
Security
Agents

Working With a Buyer’s Big-City Security Concerns and Desires

October 29, 2025
Redfin
Agents

Redfin Private Listing Restrictions on Pause as Compass Demands Internal Communications

October 29, 2025
Please login to join discussion
Tip of the Day

How to Baby-Proof Your Next Open House

Just because a home is staged doesn’t automatically make it baby-proofed. Here are some simple changes to make it safer for prospective buyers. Read more.

Business Tip of the Day provided by

Recent Posts

  • Lone Wolf Technologies Announces New Integration with Follow Up Boss
  • Fed Cuts Rates by Quarter Point, Again; No Significant Mortgage Rate Changes Expected
  • Brokers Invited to ‘Growth Through Acquisitions’ Event Hosted by Anthony Lamacchia

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X