Presidental Initiatives to Help Borrowers & Mortgage Companies

The president spoke at 11:00 am today about assisting the sub prime mortgage borrowers. Although no follow up questions were taken, the presidents statement centered on 3 initatives:

1. Enforcement of predatory lending laws, and "more clarity" on brokers fees and closing costs.
2. Easing of FHA rules to allow borrowers to refi into FHA loans.
3. Changing tax laws that would elimnate or reduce capital gains taxes for ARM refis
   

Most are bills going through congress and the senate, so nothing solid yet.

An important item mentioned was Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac have asked the govornment to increase the maximums on thier loan portfolios. Initially denied, Bernake has made allusions to increasing the loan volume the govornment back companies can take on.

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