David Willis joins Prime Equity Mortgage Group

FDIC chair proposes homeownership preservation loansMortgagePress.comFDIC, Sheila Bair, Congress, Financial Times, U.S. Treasury, foreclosure, Homeownership Preservation Federal Deposit Insurance Corporation Chairman Sheila Bair outlined in an op-ed piece in a recent issue of Financial Times a proposal that would assist one million homeowners who are facing foreclosure. The plan proposes that Congress authorize the U.S. Treasury to use $50 billion to make loans to borrowers with unaffordable mortgages to pay down up to 20 percent of their principal. The repayment and financing costs for these Homeownership Preservation (HOP) loans would be borne by mortgage investors and borrowers. This approach is scaleable, administratively simple, and will avoid unnecessary foreclosures to help stabilize mortgage and housing prices. More details about the plan are available on the FDIC's Web site by clicking here.