Taken from a White House Fact Sheet:
Key Aspects of the President’s plan include:
Broad based refinancing to help borrowers who are current on their payments take advantage of low interest rates which will:
- Provide access to refinancing for all non-GSE borrowers who are current on their payments & meet simple criteria
- Streamline the refinancing process for all GSE borrowers who are current on their loans
- Give borrowers the chance to rebuild equity through refinancing
The President will also be creating a single set of standards to make sure borrowers & lender play by the same rules including:
- Access to a simple mortgage disclosure form, so borrowers understand the loans they are taking out.
- Full disclosure of fees and penalties
- Guidelines to prevent conflicts of interest that end up hurting homeowners
- Support to keep responsible families in their homes & out of foreclosure
- Protection for families against inappropriate foreclosure, including the right of appeal
Other steps that will be taken to help families through hardships & stabilize the market include:
- Major banks are now providing up to 12 months of forbearance to unemployed borrowers looking for work.
- The use of Joint Investigation into Mortgage Origination & Servicing Abuses to further investigate misconduct that contributed to the financial crisis under the leadership of federal & state co-chairs.
- Rehabbing neighborhoods & reducing foreclosures by increasing incentives for modifications that help borrowers rebuild equity. This may also help put people back to work rehabilitating neighborhoods through Project Rebuild.
Contact Michael Caputo at Starkey Mortgage for more information & answers to your questions regarding these new and pending changes that may affect your home!
Office: 912-355-5997
mcaputo@starkeymtg.com
