It's looking like Obama socialism is gearing up as he seems to be looking for more ways to give tax money away to more underwater borrowers. Since he took office he’s had only one way to fix the housing market and that is to throw more good money after bad. Let the market work itself out, more pain short term and much less pain long term.
Home Affordable Refinance Program
If you had a loan in 2009 and it was backed by Freddie Mac or Fannie Mae you likely received a refinance if you owed 125% or less of the home's value.
When this program proved too hard to qualify for the Federal Housing Finance Agency decided to redo the program making it easier from homeowners.
Although this did show promise for many homeowners it apparently still did not give away enough taxpayer money to save those who have for the most part borrowed poorly.
We're now looking at a push by the Obama administration to offer government-backed refinances for borrowers of all loans whether this has the possibility of wiping out FHA's reserves or not does not seem to matter to Mr. Obama since he'll simply write a check with our money to cover the losses to save his parties voters.
The absolutely wonderful aspect of all this is that even if he couldn't get his new version of refinance mania through Congress he would simply have his appointee in the treasury mandate an interest rate buydown with our tax money thus circumventing Congress once again.
Why is it we even have Congress when the president of the United States simply ignores laws or circumvents laws in order to get what he wants?