“People out here don’t have a lot of time or a lot of patience for some of that nonsense that’s been going on in Washington,’’ he said.
The new rules for federally guaranteed loans represent a recognition that measures the administration has taken so far on housing have not worked as well as expected.
While the White House tried to avoid predicting how many homeowners would benefit from the revamped refinancing program, the Federal Housing Finance Agency estimated an additional 1 million people would qualify. Moody’s Analytics say the figure could be as high as 1.6 million.
Under Obama’s proposal, homeowners who are still current on their mortgages would be able to refinance no matter how much their home value has dropped below what they still owe.
“Now, over the past two years, we’ve already taken some steps to help folks refinance their mortgages,’’ Obama said, listing a series of measures. “But we can do more.’’
At the same time, Obama acknowledged that his latest proposal will not do all that’s needed to get the housing market back on its feet. “Given the magnitude of the housing bubble, and the huge inventory of unsold homes in places like Nevada, it will take time to solve these challenges,’’ he said.
The mortgage assistance plan by the Federal Housing Finance Agency will help borrowers with little or no equity in their homes, many of whom are stuck with 6 or 7 percent mortgage rates, to seek refinancing and take advantage of lower rates. The FHFA plans to remove caps that had allowed homeowners to refinance only if they owed up to 25 percent more than their homes are worth.
The refinancing program is being extended until the end of 2013. It was originally scheduled to end in June 2012.
The administration’s incremental steps to help homeowners have prompted even the president’s allies to demand more aggressive action.
Representative Dennis Cardoza, a moderate Democrat from California, gave voice to Democratic frustration on the housing front last week when he announced his decision not to seek reelection, blaming the Obama administration directly for not addressing the crisis.
“I am dismayed by the administration’s failure to understand and effectively address the current housing foreclosure crisis,’’ Cardoza said in a statement that drew widespread attention. “Home foreclosures are destroying communities and crushing our economy, and the administration’s inaction is infuriating.’’
