The final component mentioned in the Stability section of the White 
House housing plan has a stated goal of supporting local communities. Information concerning this in the Executive Summary is, at best, sketchy. We will want to review the details, once they are released March 4th.
Strengthening FHA Programs and Providing Support for Local Communities
- Ease restrictions in Federal Housing Administration Programs, Including Hope for Homeowners
- Strengthening Communities Hardest Hit by the Financial Housing Crisis
The current Hope for Homeowners, as I understand, has experienced limited success. This initiative was designed to assist struggling homeowners with an avenue for refinancing. Under the Obama plan, the following issues are to be addressed:
- Reduce fees paid by borrowers
- Provide greater flexibility for lenders to modify loans in trouble
- Allow for borrowers with higher debt ratios to qualify
- Allow payments to servicers of existing loans
The “strengthening communities” is an area for which, in my opinion, we should keep a watchful eye. At first blush, you may think “this sounds like a worthy goal”. As with most government programs the devil will be in the details.
- HUD will award $2 billion in competitive Neighborhood Stabilization Program grants for innovative programs to reduce foreclosures
- Provide and additional $1.5 billion to provide renter assistance to “reduce homelessness and entry into shelters”
I have not had any direct experience with the Hope for Homeowners program. Therefore, I am unfamiliar with why it has not been more effective. For those of you that have worked with Hope for Homeowners, I am interested in you sharing your experiences.
I find myself viewing the Neighborhood Stabilization Grant program 
with suspicion and curiosity. If programs are made available in my market area I think it will be incumbent to become familiar with the programs. If for no other reason than being a professional resource to home owners.
My suspicions arise from what will be the underlying or hidden agenda from the groups that will receive these funds. I know I have not seen the details yet, but this is one for which I am going to keep a watchful eye.
I am imagining “community organizations” here. I don’t know about you, but I am going to be looking for ACORN. This has all the possibility of government corruption. Pay offs to groups that assist legislators win elections and re-elections.
We as voters need to be ferreting out where this money is going. What is the connection between the community organization and the congressmen in that particular district?
Maybe I’m being too cynical. Nonetheless, I am looking for ACORNS!
What are your thoughts? Am I being too cynical? Do you know of worthy community organizations, in your area that can apply funds like this appropriately?
Comments Welcome!
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Stability
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Consistent Guidelines
Here Comes the Judge
What the Fed
Jay Williams
www.myhomeloanwithjay.com
;)
;)
You are not nearly cynical enough.
This bill should have the title, "Taxpayer Funded Crony and Redistribution of Income Act of 2009".
If you read the fine print in this bill, and I have, you'll see that the administration an oversight of the monies are in the hands of a few, very few, persons appointed by the Office of the President. About 20 persons total will have the power to spend $787,000,000,000.
The money transferred to various govenment agencies will increase the size of government dramatically and, as we know, government only expands, it never shrinks. WAIT, they are shrinking the Department of Defenxe or at least shrinking the rate of expansion.
Interesting that the biggest hit is on the department of government that protects the American citizen.
Go figure.