Yesterday the President announced that he is taking action to help our country’s service men and women who were wrongfully harmed by the mortgage crisis, in addition to reducing fees for Federal Housing Administration (FHA) borrowers looking to refinance.
In the press conference, he noted that veterans and servicemembers were some of those most at risk in this crisis. As part of the historic settlement reached between the federal government and mortgage providers, these institutions will now provide relief to servicemembers and their families who were wrongly foreclosed upon or financially disadvantaged by mortgage abuses. Under this agreement, mortgage providers will now have to:
- Investigate and compensate any servicemembers wrongfully foreclosed upon
- Compensate servicemembers wrongfully denied the ability to lower their interest rates
- Compensate servicemembers who had to sell their homes at a loss due to a permanent change in station
- Provide $10 million in funding for the Veterans Housing Benefit Program
In addition, the administration announced that the FHA will be cutting its fees for refinancing loans it already insures. This change means that an estimated 2-3 million borrowers could be eligible for savings, which--for the average FHA borrower--would amount to about $1,000 a year.
Watch the video of President Obama’s remarks and then share it with your family and friends.