03-04-08

Federal chairman Ben Bernanke announced today that more must be done to help American Homeowners and to less the possible impact to the economy. He called for a “vigorous responses” from legislators and the government urging that something be done soon. He urged that more can and should been done to prevent foreclosures.

Instead of lower interest rates he suggested the the principal amount owed should be lowered and adjusted accordingly to better fit real property values. Which would result in overall lower payments for the homeowner. FHA reform was also brought up and that the agency should be giving more latitude to set underwriting standards and prevent foreclosures.

We can only hope that the current administration will listen to Bernanke and take his suggestions to heart since just last week the Bush administration said they where done with trying to help. The efforts of Bernanke will likely spark some debate and hopefully force some changes on the lending industry and allow homeowners to keep their homes.

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