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December 22, 2014

Government’s Flagship Foreclosure Program Extended to 2016

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Government’s Flagship Foreclosure Program Extended to 2016

The Obama administration announced Thursday that it will extend its Making Home Affordable Program to help home owners avoid foreclosure, as well as use Treasury funds to ramp up construction of affordable rental housing.

The Making Home Affordable Program will now be extended through December 2016. More than 1.3 million home owners have already used program to modify their mortgages.

More from the Obama administration:

Obama’s Housing Scorecard: Cautious Progress

Market Still Healing From Great Recession

"We need to continue to be there for home owners who are facing foreclosure, those who are struggling with increasing interest rates on their modified mortgages, and those whose homes are caught underwater," said Treasury Secretary Jacob Lew. The average home owners have reduced their monthly payments under the program has been about $540 a month, according to the administration.

High demand in rental housing lately has caused rental costs to skyrocket. Lew said the administration also will allocate funds from the Treasury Department’s Federal Financing Bank to help housing agencies fund the construction of more affordable rental housing nationwide. The Federal Financing Bank could provide $500 million to $1 billion in annual funding for rental housing projects.

Source: “Obama Administration Expands Affordable Housing Plan,” Reuters (June 26, 2014)