The Washington Times
  • Subscribe
  • Times News Services
  • RSS
  • Mobile Headlines
  • e-edition
  • E-MAIL ALERTS
  • REGISTER
  • LOG IN
  • E-MAIL ALERTS
  • WELCOME
  • Your Profile
  • Log Out
  • Front Page Image
  • Classifieds
  • Autos
  • Real Estate
  • Jobs
  • Special Sections
  • Customer Service
  • Home
  • News
  • Opinion
  • Sports
    • NFL
    • NBA/WNBA
    • MLB
    • NHL
    • Tennis
    • Golf
    • Motorsports
    • Soccer
    • NCAA
    • Olympics
    • Outdoors
    • Other
  • Culture
    • Home & Living
    • Family & Kids
    • Fashion
    • Food
    • Travel
    • Health
    • Washington Visitors
    • Books
    • Military History
    • Life
    • Auto
    • TV Listings
    • Movie Listings
    • Death Notices
    • Entertainment
  • Themes
  • Communities
  • Shopping
    • Stores
    • Coupons
    • Daily Double
    • Promotion
    • How It Works
  • Videos
    • Two Guys
    • Birnbaum on Washington
    • Liz Glover
    • Amanda Carpenter
    • Morning Briefing
    • Documentaries
    • Joe Giganti
    • Video Game Minute
  • Podcasts
    • About Headlines
    • Audio and Radio
    • America's Morning News
  • Politics

    Ads add heat to health care debate

  • National

    At the Mall of America, it's big business as usual

  • World

    Drug lords finding safe haven in Bolivia

  • Business

    Health, climate bills seen to stifle hiring

  • Local

    Mayor Fenty's approval in D.C. divided by race

  • Sports

    Terps' Friedgen faces tough road ahead

  • National

    VERSACE: Follow the shopping bags

Home » News » Business

Friday, March 21, 2008

HUD plan tackles crisis

Rate this story

Average 0.00
after 0 votes
Login or register to rate this story

  • Font Size -+
  • Print
  • Email
  • Comment
  • Tweet this!
  • Share
  • Article
  • Comments ()
  • Click-2-Listen
  • Videos
Please stand by, images loading!
  • Katie Falkenberg/The Washington Times
Housing and Urban Development Secretary Alphonso R. Jackson said he can sympathize with those caught off-guard by fine print in their contracts: "I've had eight houses and I didn't read all that mess."

More Business Stories

  • At the Mall of America, it's big business as usual
  • Dubai debt raises fear in markets
  • Hilfiger's luxury home sells for $20 million
  • Toyota slashing manager bonuses

By

The Bush administration is considering a radical approach to alleviate the foreclosure crisis by helping homeowners refinance homes that have fallen in value while protecting the government against losses on the loans.

Home prices already have fallen 10 percent on average nationwide from their 2006 peak, and are down much more in cities like Miami and Las Vegas. Housing and Urban Development Secretary Alphonso R. Jackson said a proposal he sent to the White House would enable the Federal Housing Administration (FHA) to insure 80 percent of a loan's face value in markets where home prices are falling, instead of providing the usual 100 percent guarantee.

Homes generally cannot be refinanced when their market price falls below the face value of the loans, and that has become a major reason why thousands of people are choosing to abandon their homes. An estimated one in 10 Americans now live in homes that are "under water."

The HUD secretary said yesterday he understood how some homeowners facing foreclosure might not have been aware of all the terms of their mortgage loans, telling reporters and editors of The Washington Times that "I've had eight houses and I didn't read all that mess."

His proposal might open up an avenue of recourse for the first time for homeowners in over their heads who would like to refinance and stay in their homes.

"I just made a proposal this morning to the White House for those loans that are under water. We will insure 80 to 85 percent of the loan — give ourselves some leeway even if it falls a little more," he said.

Mr. Jackson said he thinks the steep drop in home prices may be close to bottoming out, but his proposal shows that the administration, like many in the private sector, is preparing for the worst.

The proposal has not been approved by the White House but might be "soon," said HUD spokeswoman DJ Nordquist. "We'd like to get those loans right-sized up" and "use the FHA where we can" to alleviate the foreclosure crisis, she said.

Mr. Jackson said he can sympathize with people who are caught off-guard by sudden surges in their monthly mortgage payment because they didn't read the fine print in their contracts.

Many people with homes in foreclosure say they didn't understand what they were getting into when they took out their loans, but the administration until recently has taken a hard line, insisting that people must take responsibility for their financial decisions.

12Next »

Post a comment

There are comments on this article, submit your opinion!

Please login or register to post a comment

Ask a Question

You Report

Do you have another point of view, photos, audio, video or more information about a story?

Top Stories

Most Read

  1. EDITORIAL: Hiding evidence of global cooling
  2. Climate 'czar' says hacked e-mails don't change anything
  3. Grade-schooler unearths fossil at dinosaur park
  4. Top Republican lawmakers not attending State Dinner
  5. EDITORIAL: The global-cooling cover-up
More Top Stories »
  1. D.C. sports icon, Wizards owner Pollin dies
  2. List of W.H. state dinner guests
  3. Climate czar rejects doctored data claims
  4. EDITORIAL: Obama's sacked inspector general
  5. Conservatives seek test for RNC funds

Most Shared

  1. EDITORIAL: Hiding evidence of global cooling
  2. EDITORIAL: The duty of a nation to obey God
  3. EDITORIAL: The global-cooling cover-up
  4. Grade-schooler unearths fossil at dinosaur park
  5. Climate czar rejects doctored data claims
More Top Stories »
  1. VAN CLEAVE: A Thanksgiving message from Russia's spy agency
  2. The United Socialist States of America
  3. EDITORIAL: A call to prayer and repentance
  4. Climate 'czar' says hacked e-mails don't change anything
  5. White House logs point to donor access

Most Commented

  1. EDITORIAL: Hiding evidence of global cooling
  2. Climate 'czar' says hacked e-mails don't change anything
  3. Climate czar rejects doctored data claims
  4. Obama to attend Denmark climate summit
  5. Ky. hanging, ruled a suicide, leaves bloggers at loss for words
More Top Stories »
  1. EDITORIAL: The duty of a nation to obey God
  2. Obama taking emissions goal to summit
  3. EDITORIAL: Kennedy vs. Catholicism
  4. A-listers, fundraisers at W.H. state dinner
  5. 9/11 families sharply split on civilian court trials

Listen to Washington Times Radio

  • America's Morning News

    with John McCaslin and Melanie Morgan

Question of the day

Are you planning to go shopping today?

Blogs & Columns

  • Hot Button Blog

    RNC: Breast cancer recommendations may lead to 'rationing'

  • Belief Blog

    Evangelicals OK civil disobedience

  • Out of Context

    Foods that might kill libido

  • On the Fly

    United lifts some 'award' blocking

  • Technology

    Facebook wins round against phishing spammer

  • Redskins 360

    Redskins matchup

  • SNOBlog

    Beyond 'Woody'

Videos

Advertising Links
TWT Store
  • e-edition
  • Print Edition
  • Weekly Washington Times
TWT Affiliates
  • Middle East Times
  • Golf
  • UPI
  • Arbor Ballroom
  • Washington Times Global
  • About TWT
  • Press Room
  • F.A.Q.
  • Work for TWT
  • Advertise
  • Sponsors
  • Contact Us
  • Privacy Policy
  • Site Map

All site contents © Copyright 2009 The Washington Times, LLC.