July 1st, 2009
12:52 PM ET
5 years ago

CNNMoney.com: Obama widens mortgage refi program

NEW YORK (CNNMoney.com) - The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part.

Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%.

The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas - one of the hardest hit areas where Housing Secretary Shaun Donovan announced the expansion Wednesday - owe more than their homes are worth.

"The president's Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today's announcement we will extend its reach still further," said Donovan.

Some 20,000 loans have been refinanced so far, according to the Treasury Department.

Full story


Filed under: CNNMoney.com • Obama administration
soundoff (25 Responses)
  1. Bob in Pa

    Great, Thanks BO. Now us who were a little bit more responsible will have to shoulder a little more

    July 1, 2009 01:08 pm at 1:08 pm |
  2. Honest Independent

    My tax dollars going to support people who needed big cars, big houses, and big screen TV's. I don't ask for entitlements, why do so many Americans expect a handout?

    July 1, 2009 01:14 pm at 1:14 pm |
  3. girlymen love the GOP

    This is great news.Limbaugh is blowing a fuse.Please send Rush some hotdogs,we may get lucky.He says hotdogs are good for your heart,lets prove him right.

    July 1, 2009 01:14 pm at 1:14 pm |
  4. Dutch/Bad Newz, VA

    I give the President's plan some props so far, but 20,000 refinanced homes is barely scratcing the surface. If the borrowers are making their payments on time, the banks should not be rejecting refinancing applications.

    July 1, 2009 01:23 pm at 1:23 pm |
  5. Enough

    More tax payer money being thrown at the irresponsible. Home values go in cycles, this is nothing new, in the past you wait it out until prices come back. Not with this administration, we must take from the responsible to enable the irresponsible. Boy am I dumb for only buying a house I could afford with a payment I could afford. If I was smart I would have refinanced at 125% to take money out, then I too could get some of this free aid. When does this crap end and when will people take responsibility for their own actions??? Never, under Democratic control.

    July 1, 2009 01:23 pm at 1:23 pm |
  6. bma

    Home ownership isn't a right, too bad barry and the central planners won't accept this.

    July 1, 2009 01:27 pm at 1:27 pm |
  7. Kevin B

    I am constantly impresseed with how hard the President is working on behalf of the american people. He was handed the worst economic meltdown since to '30's and a multitude of international problems.

    Only the most partisan and politically myopic refuse to see the huge effort being put forth to restore some semblance of the american dream by this administration.

    The GOP and thier corporate masters should be run out of the country for the pain thier greed, selfishness and incompetence have inflicted upon the american public.

    July 1, 2009 01:28 pm at 1:28 pm |
  8. S Callahan

    20,000 helped out of hundreds of thousands possibly millions needing help. It's like putting a small bandaid over a large wound.
    This is not over..prices are like a slow drop that are going to hit hard at the bottom.....wish it weren't so.

    July 1, 2009 01:29 pm at 1:29 pm |
  9. Claudia in Houson

    I still can't figure out what Bush did over the last 8 years other than create a war and destroy our economy.

    July 1, 2009 01:30 pm at 1:30 pm |
  10. Ken

    When I was upside-down on a mortgage in 1989, and received military orders that forced me to move, I could not afford to sell my home. I took a several hundred dollar a month loss, for years, before I could afford to unload the property at the market bottom. When I next purchased a home I was told by the bank and the realtor (both of whom profit from a sale) that I could borrow 5 times my annual income. I told them they were fools. Looks like I was the fool, for making sound financial choices. I could have the tax payers bailing me out for my ignorance. Welcome to the "new" America. Not sure how much you are going to like it!

    July 1, 2009 01:30 pm at 1:30 pm |
  11. Fair is Fair

    Hey Mr. President,

    I bought some stocks a few years back that are worth a lot less than what I paid for them. Where's my help?

    Real estate, like any other investment, carries risk. If you cannot afford to take the risk, you should not have signed on the dotted line.

    July 1, 2009 01:30 pm at 1:30 pm |
  12. Doug, New Jersey

    Rewarding taker libs for being selfish narcissists who bought homes that they never really could afford is the Democrat way. Now all the responsible people will be punished and forced to pay for libs Democratic narcissism irresponsibility. The lib really is so selfish as to only see this as them being a victim, typical Democrats. In addition to them solely being the problem with this country, they then have the nerve to spew their lib hatred and attack other Americans for being responsible, honest, and fair.

    July 1, 2009 01:52 pm at 1:52 pm |
  13. JD

    So now here we go again. Hey I payed for my home. I didn't buy above my means. I made my monthly note. But now we come along with a new administration who believes in the stork. Don't buy above your means folks. Oh but hey I loose my home now I can refinance it and not be penalized. Now that makes a lot of since. I just hope we can survive the next 4 years. I was raised that when you don't have anymore money you quit spending while the Obama administration is desized to just print some more without the slightest idea of how or if it ever gets payed back. God help us!

    July 1, 2009 01:59 pm at 1:59 pm |
  14. dominican mama 4 Obama

    Looking out for the "95percenters". Very commendable Mr. President. Thank you. Unlike what some on these blogs would like to believe: we work, pay taxes, and have felt more than the "top 5" the impact of the economic meltdown. We appreciate any, and all of your efforts on behalf of the Average American.

    July 1, 2009 02:06 pm at 2:06 pm |
  15. Hugo

    Now what homeowners would that be? Maybe the ones that didn't qualify for a home they couldn't pay for and received a Barney Frank and Frank Raines sub-prime loan. Maybe the ones that have 0 money down on a home with 100% financing? This is just another kick in the teeth like credit card reform was to responsible hard working Americans that EARNED their credit ratings through being financially responsible.

    Now mortgage bankers are going to pick up the tab with federally distributed taxpayer money. How do you re-finance an upside down mortgage when property values have dropped 20% and the Owner has never done more than pay interest, who eats the difference? Bona Petite American Taxpayer, that is who!

    July 1, 2009 02:11 pm at 2:11 pm |
  16. Alfred E. Neumann

    That's right, let's revisit the mortgage mess and allow unqualified buyers to suck the credit right out of the economy.

    Don't kid yourself, George W. Bush had help from liberal Democrats in creating this economy. And now they want to continue with more of the same.

    This meets the definition of insanity!

    July 1, 2009 02:20 pm at 2:20 pm |
  17. Donna

    This is actually GREAT news; by revising the pre-requisite from 105% to 125% will allow more homeowners to be included in this mortgage-refinancing program.

    I am a testimony of this: Two months ago, my request to refinance was rejected by Chase Bank because my mortgage is worth 111% of my home’s value.

    Needless to say, after hearing what our Prez did, I placed a call to my bank

    July 1, 2009 02:22 pm at 2:22 pm |
  18. Hugo Castro

    When you are giving away trillions, whats a few tens of billions more. Hey let's let everyone get out from under their mortgages – except those middle classers who are working hard to keep their heads above water so they can pay maximum tax to Obamulous...!

    July 1, 2009 02:26 pm at 2:26 pm |
  19. Jimmy the Greek

    I have to wonder.... how many government-sponsored Refi's acquired the home originally under the government mandated "Fair Housing Act" which required lenders to loosen financing practices??

    Yep – just keep rewarding bad behavior!

    If you irresponsibly bought more house than you could afford.... didn't have good credit... can't make your mortgage payments.... WE will bail you out!!

    If you live responsibly – keep good credit, made a large downpayment on your home, continue to make your payments on time.... SORRY no benefit for you... AND... you get to pay for the irresponsible group of people.

    "Change you can believe in!"

    July 1, 2009 02:30 pm at 2:30 pm |
  20. Billy Ray Valentine, Philadelphia, PA

    It won't help one bit. No job = No mortgage payments, no matter if you refinance or not.

    July 1, 2009 02:32 pm at 2:32 pm |
  21. Obama Victim

    spreading more wealth?? good day for the comrades

    July 1, 2009 02:32 pm at 2:32 pm |
  22. Simon/Orlando

    Giving loans to people who couldn't afford to pay them back was what got us into this recession in the first place. Owning a home is an earned privilage not a god given right no matter what Acorn says. That's why there are apartments.

    July 1, 2009 02:37 pm at 2:37 pm |
  23. LM, NC

    I love this president. He is just what we needed.

    I hope the Dems win in 2010 and 2012. We really need the change that Barack stand for, not more of the same greedy poliitics of the past.

    July 1, 2009 02:44 pm at 2:44 pm |
  24. stormerF

    Buy a home to live in, not turn over every two years,You gamble and you lose its your fault not the Mortgage companies nor the Governments.Suck it up and live in the home you bought.

    July 1, 2009 02:45 pm at 2:45 pm |
  25. stormerF

    why does not Obama's and the democratic plan cover the Congress,Instead of trying to force one plan on the American People and a different one for them???

    July 1, 2009 02:51 pm at 2:51 pm |