According to the Treasury, as many as six million families are expected to face foreclosure in the next several years, with millions more struggling to stay current on their payments, and with Friday’s news that unemployment has spiked to 8.1 percent with job loss topping four million since the recession began in December 2007. So with this, the Obama Administration’s Making Home Affordable program was announced this week along with the possibility that it could help three million to four million families avoid foreclosure, and it is expected to cost $75 billion over the next several years. The announcement comes only weeks after the administration announced its Homeowner Affordability and Stability plan that would offer up to $200 billion to support low mortgage rates by “strengthening confidence” in Fannie Mae and Freddie Mac, the government-controlled mortgage finance companies — monies that were made available through the Housing and Economic Recovery Act. According to the Treasury, the program will:
- Provide access to low-cost refinancing for responsible homeowners suffering from falling home prices;
- Prevent foreclosure by way of working with the GSEs, FHA, the FDIC and other federal agencies, as part of a “comprehensive multi-part strategy to prevent millions of foreclosures and help families stay in their homes”;
- Support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac using the previously authorized funding.