Since 2009, there have been numerous programs rolled out with a great amount of federal money to remedy the housing crisis. All have fallen far short of projected impacts for 1 simple reason. Lenders are not obligated to participate. So do, but even those make half-hearted attempts toward participation. The lenders would obviously prefer to force borrowers to remain at high interest rate levels to increase the profits of their investors as well as their own bottom line. They bog borrowers down who seek assistance in lost paperwork and a myriad of phone systems designed, not to help, but merely to delay and confuse the consumers until they give up in desperation.
The simple solution is to mandate participation. Of course, the banking lobby will strongly object and do everything within its power to water down such efforts. But it can be quite simple - participate or don't benefit from government sponsored lending programs such as FHA, VA, RD, Fannie Mae, and Freddie Mac. Faced with the lose of these gravy trains, I'm sure lenders would rush to participate and facilitate all the available housing stimulus programs.
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