White House Details on Housing Fix

The White House plans to announce changes to a housing fix strategy today. The FHASecure program is the Republican answer to problems in the mortgage and housing markets. Lenders reduce the balance on certain loans and the risk of default goes to the government.

The program is less extensive than the plan proposed by Democrats, and critics will complain that it won't help enough people. Stay tuned to see how the banks and regulators react to this proposal. We may end up with a multi-pronged attack on the mortgage problem instead of one coordinated effort from the government and industry. However, the odds of something actually happening are getting better and better as politicians get antsy to put a plan into action.

Further reading:

• WSJ Details on FHASecure