White House Wants Refis to be Easier but is Light on Details

President Barack Obama, in his State of the Union speech, signaled that his administration is moving toward making it easier for homeowners to refinance into affordable mortgages. "This year, we will step up refinancing so that homeowners can move into more affordable mortgages," the President said. However, Mr. Obama was a bit light on details. Some industry officials indicated it might involve changes to the Home Affordable Modification Program. Others said it could portend changes to Fannie Mae and Freddie Mac programs that refinance borrowers with loan-to-value ratios from 81% up to 125%. Liberal housing groups were disappointed by the speech because of the lack of focus on foreclosures and housing issues. "The President highlighted the need for jobs and health care reform for middle-class families," said Mike Calhoun, president of the Center for Responsible Lenders. "But Americans need relief in the housing market and stronger measures to stop preventable foreclosures." National Low Income Housing Coalition president Sheila Crowley noted that the speech was "notably lacking" in its attention to the foreclosure crisis and affordable housing crisis. "Not only are homeowners facing the loss of their homes, but low income renters are competing for housing in an ever shrinking supply of low cost rental homes," Ms. Crowley said.