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For Immediate Release
Office of the Press Secretary
October 17, 2008
Fact Sheet: Helping Responsible Homeowners Avoid Foreclosure
The Federal Government Is Addressing Housing Market Challenges And Assisting Struggling Homeowners Across Our Nation
"[T]he decline in the housing market has left many Americans concerned about losing their homes. My Administration launched the HOPE NOW Alliance, which brings together homeowners and lenders and mortgage servicers and others to find ways to prevent foreclosure. We're also making it easier for responsible homeowners to refinance into affordable mortgages insured by the Federal Housing Administration. Americans can know that if you're struggling to meet your mortgage there are ways you can get help."
President George W. Bush, 10/11/08
The Federal Government is collaborating with State and local partners to use the best tools available to keep homeowners in their homes. Americans need to know that help is available. The actions of the Federal Government are helping to address a key problem in the housing market: the excess supply of homes on the market. By helping responsible borrowers facing preventable foreclosures stay in their homes and ensuring that mortgage financing remains available to consumers, our housing market will be able to recover and that recovery will help our broader economy grow.
The Administration's actions have helped more than two million responsible borrowers keep their homes. President Bush and his Administration have:
As The Treasury Department And The GSEs Increase Their Purchases Of Mortgage-Related Assets, Affordability Should Improve For Americans
The Federal Government now has the authority to purchase mortgages and mortgage-backed securities (MBS), which will help stabilize mortgage financing and other lending, help remove uncertainty from selling institutions, and help homeowners. The Treasury Department's new asset purchase authorities are aimed at getting the mortgage loan and credit markets working again by purchasing mortgages and MBS from financial institutions, thereby improving their ability to offer new loans, reducing the pressure on mortgage rates, and promoting market stability. The Treasury Department is also working with HUD and the Federal Deposit Insurance Corporation to help as many homeowners as possible stay in their homes, while protecting taxpayers.
The Federal Housing Finance Agency (FHFA), the new regulator for government sponsored enterprises (GSEs) is working with the GSEs to preserve the availability of mortgage financing. Shortly after the housing bill was enacted, FHFA placed Fannie and Freddie into conservatorship and is working with them to ensure they continue to fulfill their mission to make mortgage financing available to consumers.
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