One of my mortgage broker buddies (Dennis Reese) sent this to me. I thought it does a good job of conveying the position of the government in the face of mounting foreclosures and gives more reason to believe the San Diego real estate market will not take a big hit.
Mortgage finance companies tell U.S. lawmakers that they will introduce new programs to help those in trouble dig their way out.
April 17 2007: 3:43 PM EDT
WASHINGTON (Reuters) -- U.S. banking regulators urged lenders Tuesday to help distressed borrowers unable to make mortgage payments and to offer possible incentives to move homeowners to lower-cost loans.
The Federal Reserve and other agencies said they may relax some regulatory penalties for financial institutions that pursue reasonable workout plans with borrowers. Lenders may also receive favorable consideration under the Community Reinvestment Act, the regulators said in a statement.
"The agencies want to remind their institutions that existing regulatory guidance and accounting standards do not require immediate foreclosure on homes when borrowers fall behind on payments," they said.
The statement was issued jointly by the Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency and Office of Thrift Supervision.
U.S. banking regulators and lawmakers are exploring ways to help millions of borrowers with poor credit history who took out adjustable rate mortgages that start with low introductory monthly payments and then dramatically increase after the first two or three years.
The regulatory agencies said a prudent workout plan is in the long-term interest of both the financial institutions and borrowers and urged lenders to work with consumer groups to help borrowers avoid predatory foreclosure rescue scams
Rick Ungar is a Certified Distressed Property Expert, solving the foreclosure issue one homeowner at a time. Contact us today to learn about the best options to preserve your credit and buy again soon.
