HUD Nominee: Obama Wants to Revamp H4H

The incoming administration of Barack Obama wants to revamp the Hope for Homeowners program to make the Federal Housing Administration refinancing initiative more "effective," according to Shaun Donovan, Obama's nominee to be the new Housing and Urban Development secretary. Mr. Donovan told the Senate Banking Committee at his confirmation hearing that he is taking an active role in developing a "bold, comprehensive" foreclosure prevention effort that Mr. Obama has advocated. The former New York City housing commissioner and HUD deputy assistant secretary said the H4H program would be an "important piece" of the foreclosure prevention plan. And he said the Federal Deposit Insurance Corp. plan that provides loan guarantees for newly modified loans is "promising." But they want to make sure the incentives are structured to reduce re-defaults and minimize taxpayer costs. The Senate is expected to confirm Mr. Donovan to be the new HUD secretary next week after Mr. Obama is sworn in as president.