Obama will unveil his plan @ 12:15 pm today
If you enjoy the content at iBankCoin, please follow us on TwitterWASHINGTON (Reuters) – President Barack Obama was set on Wednesday to unveil a plan to stabilize the troubled housing market, a main cause of the economy’s deepening slump.
Fresh from signing into law a sweeping $787 billion fiscal stimulus package, Obama is turning his attention to the housing market, where foreclosures have continued to climb despite earlier initiatives aimed at halting that trend.
The Obama plan will involve government subsidies to mortgage servicers and lenders to encourage them to lower payments for borrowers in distress.
The aim is to bring mortgage payments to a more affordable range of around 31 percent of borrowers’ incomes.
The Obama administration has closely guarded the details of the roughly $50 billion plan but sources familiar with it have made clear it would be bolder than prior efforts to stem foreclosures.
Obama will outline the plan in a speech at a high school in Mesa, Arizona at 10:15 a.m. Mountain time (12:15 p.m. EST). It marks the second day of a two-day campaign-style swing Obama is taking to highlight his economic initiatives.
