News / USA

    Obama Proposes More Help for Troubled US Homeowners

    President Barack Obama holds up a proposed mortgage application form as he speaks at the James Lee Community Center in Falls Church, Va., Wednesday, Feb. 1, 2012.
    President Barack Obama holds up a proposed mortgage application form as he speaks at the James Lee Community Center in Falls Church, Va., Wednesday, Feb. 1, 2012.
    Kent Klein

    President Barack Obama has unveiled a plan to boost the economy by helping some homeowners refinance their mortgages. The initiative, announced Wednesday, would build on an earlier White House program.

    Declining housing prices and widespread foreclosures are among the biggest drags on the U.S. economic recovery.

    President Obama went to a neighborhood near Washington where home values have dropped sharply, to lay out his proposal to fight the problem.

    “I am sending Congress a plan that will give every responsible homeowner in America the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates," said President Obama.

    The plan would expand a program that was intended for at least four-million homeowners to refinance their mortgages at lower rates, but reached only about one million.

    Plunging home values have left an estimated 11 million Americans owing more than their homes are worth, according to one real-estate data firm.  That amounts to one out of every four homeowners with a mortgage.

    President Obama says the problem has been deeper than many experts and officials expected, and that it will not be solved quickly.

    “It is going to take more time than any of us would like for the housing market to fully recover from this crisis," said Obama. "This was a big bubble.  And when it burst, it had a big effect.  Home prices started a pretty steady decline about five years ago.”

    Some economists say Mr. Obama’s plan will not work.  Cato Institute Financial Regulation Studies Director Mark Calabria says reducing mortgage rates helps the homeowner, but puts less money into the economy.

    “But I am also lowering, at the same time, the interest payment that goes to the bondholder, the investor, whether it is a retirement fund or a pension fund," said Calabria. "So you are making one person wealthier with higher disposable income, but you are doing it at the same time that you are making another corresponding party poorer by the same amount.”

    Calabria also says the initiative does nothing to address the top cause of foreclosure, which is job loss by mortgage holders.

    The new program would cost between $5 billion and $10 billion.  It would be paid for by a fee on large banks, a proposal Congress has previously rejected.

    You May Like

    Leaving Scalia Replacement to 2017 Would Mean Unusually Long Vacancy

    History of high court shows Obama not in unique situation during final year of presidency

    US Fact Checkers Debunk Some Republican Presidential Candidate Claims 

    Slim evidence for several claims made by Republican presidential candidates at their last debate ahead of next Saturday's key nominating election in South Carolina

    Uganda Presidential Debate a Small Victory for Democracy

    In homes and bars across country, Ugandans were fixated on their screens as eight political candidates running for president took part in national debate

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    New Technology Aims to Bring Election Transparency to Ugandai
    X
    Serginho Roosblad
    February 12, 2016 9:29 PM
    A team of recent graduates from Uganda’s Makerere University has created a mobile application designed to help monitor elections and expose possible rigging. The developers say the app, called E-Poll, will make Uganda's democratic process fairer. From Kampala, VOA's Serginho Roosblad reports.
    Video

    Video New Technology Aims to Bring Election Transparency to Uganda

    A team of recent graduates from Uganda’s Makerere University has created a mobile application designed to help monitor elections and expose possible rigging. The developers say the app, called E-Poll, will make Uganda's democratic process fairer. From Kampala, VOA's Serginho Roosblad reports.
    Video

    Video Refugees in Kenya Vie to Compete in Rio Olympics

    In Kenya, refugees from other African nations are training at a special camp and competing for a limited number of slots in this year's Rio Olympics under the flag of the International Olympic Committee (IOC). As Lenny Ruvaga reports from Ngong, this is a first in Olympic history.
    Video

    Video Gateway to Mecca: Historical Old Jeddah

    Local leader Sami Nawar's family has been in the Old City of Jeddah for hundreds of years and takes us on a tour of this ancient route to Mecca, also believed to be the final resting place of Adam's wife, Eve.
    Video

    Video Two-thirds of World Faces Water Shortage

    Four billion people — or two out of every three on the planet — do not have enough water to meet their basic needs. That is far greater than previously thought, according to a new study that presents a more accurate picture of the problem. As VOA's Rosanne Skirble reports, the findings will help policymakers and the public craft solutions to address the threat.
    Video

    Video As Refugees Perish, Greek Graveyards Fill

    Aid workers on the Greek island of Lesbos say they are struggling to bury the increasing number of bodies of refugees that have been recovered or washed up ashore in recent months.  The graveyards are all full, they say, yet as tens of thousands of people clamor to get out of Syria, it is clear refugees will still be coming in record numbers. For VOA, Hamada Elrasam reports from Lesbos, Greece.
    Video

    Video Russia Bristles at NATO Expansion in E. Europe

    Russian Foreign Minister Sergei Lavrov is meeting Friday with the head of NATO after the Western military alliance and the United States announced plans for the biggest military build-up in Europe since the Cold War. Russia has called NATO's moves a threat to stability in Europe. But NATO says the troop rotations and equipment are aimed at reassuring allies concerned about Russia as VOA's Daniel Schearf reports from Moscow.
    Video

    Video To Fight Zika, Scientists Target Mosquitoes

    Mosquitoes strike again. The Zika virus outbreak is just the latest headline-grabbing epidemic carried by these biting pests, but researchers are fighting back with new ways to control them. VOA's Steve Baragona takes a look.
    Video

    Video Mosul Refugees Talk About Life Under IS

    A top U.S. intelligence official told Congress this week that a planned Iraqi-led operation to re-take the city of Mosul from Islamic State militants is unlikely to take place this year. IS took over the city in June 2014, and for the past year and a half, Mosul residents have been held captive under its rule. VOA's Zana Omar talked to some families who managed to escape. Bronwyn Benito narrates his report.
    Video

    Video Scientists Make Progress Toward Better Diabetes Treatment, Cure

    Scientists at two of the top U.S. universities say they have made significant advances in their quest to find a more efficient treatment for diabetes and eventually a cure. According to the International Diabetes Federation, the disease affects more than 370 million people worldwide. VOA’s George Putic reports.
    Video

    Video NATO to Target Migrant Smugglers

    NATO has announced plans to send warships to the Aegean Sea to target migrant smugglers in the alliance's most direct intervention so far since a wave of people began trying to reach European shores.
    Video

    Video Used Books Get a New Life on the Streets of Lagos

    Used booksellers are importing books from abroad and selling them on the streets of Africa's largest city. What‘s popular with readers may surprise you. Chris Stein reports from Lagos.
    Video

    Video After NH Primaries All Eyes on South Carolina

    After Tuesday's primary in New Hampshire, US presidential candidates swiftly turned to the next election coming up in South Carolina. The so-called “first-in-the-South” poll may help further narrow down the field of candidates. Zlatica Hoke reports.
    Video

    Video Smartphone Helps Grow Vegetables

    One day, you may be using your smartphone to grow your vegetables. A Taipei-based company has developed a farm cube — a small, enclosed ecosystem designed to grow plants indoors. The environment inside is automatically adjusted by the cube, but it can also be controlled through an app. VOA's Deborah Block has more on the gardening system.
    Video

    Video Exhibit Turns da Vinci’s Drawings Into Real Objects

    In addition to being a successful artist, Renaissance genius Leonardo da Vinci designed many practical machines, some of which are still in use today, although in different forms. But a number of his projects were never realized — until today. VOA’s George Putic reports.