Foreclosure refinancing plan doesn’t go far enough for some

PHILADELPHIA – Jan. 27, 2012 – The housing industry has been appealing for a coherent policy that will end the market’s five-year-old downturn and get real estate moving.

What President Barack Obama offered Tuesday night in his State of the Union address, though welcomed by many, does not appear to be all the industry had in mind.

The president proposed to allow up to 4 million homeowners to refinance into loans guaranteed by the Federal Housing Administration, an action Obama said would save individuals an average of $3,000 annually.

Eligible mortgages would not be held by Fannie Mae and Freddie Mac, but by other companies. In October, the administration added an FHA-guaranteed refinancing program for a potential 1 million Fannie and Freddie borrowers who owe more on their mortgages than the value of their houses.

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