• The President called on Congress to pass Federal Housing Administration (FHA) modernization legislation. This modernization proposal would lower downpayment requirements, allow FHA to insure bigger loans, and give FHA more pricing flexibility. These reforms would empower FHA to reach more families that need help – first-time homebuyers, minorities, and those with low-to-moderate incomes – and offer more options to homeowners looking to refinance their existing mortgage.
  
• "FHA-Secure." - The FHA-Secure program will help people who have good credit but who have not made all of their payments on time because of rising mortgage payments. For the first time, FHA will be able to offer many of these homeowners an option to refinance their existing mortgage so they can make their payments and keep their homes. FHA will also charge mortgage insurance premiums based on the individual risk of each loan, using traditional underwriting standards, so it can expand access and help even more families.  To view the HUD press release on FHA Secure including the qualification criteria, please click here.
  
• The President called on Congress to change a key housing provision of the Federal Tax Code so it does not punish families who are forced to sell their homes for less than their mortgage is worth. Current tax law counts cancelled mortgage debt on primary residences as taxable income.  The President proposes temporary relief to ensure that cancelled mortgage debt on a primary residence is not counted as income.
  
• The President announced that the administration will launch a new foreclosure avoidance initiative at help struggling homeowners find a way to refinance. HUD Secretary Alphonso Jackson and Treasury Secretary Henry Paulson will reach out to a wide variety of groups that offer foreclosure counseling and refinancing for American homeowners. These groups include community organizations like NeighborWorks, mortgage lenders and loan servicers, FHA, and Government-Sponsored Enterprises like Fannie Mae and Freddie Mac. The goal of this initiative is to expand mortgage financing options, identify homeowners before they face hardships, help them understand their financing options, and allow them to find a mortgage product that works for them.

The President also announced support for several current initiatives including;

• Federal banking regulators are improving disclosure requirements to ensure that lenders provide homeowners with complete, accurate, and understandable information about their mortgages. Many borrowers did not receive clear and complete disclosure regarding the terms and conditions of their mortgages. To help protect homeowners in the future, Federal banking regulators recently issued new disclosure guidelines for lenders, and they continue to consider new rules.

• Federal banking regulators recently set forth new guidelines to address lending standards, and they will continue to examine new rules.

• This fall, HUD will propose reforms to the Real Estate Settlement Procedures Act (RESPA) that would promote comparative shopping by consumers for the best loan terms, provide clearer disclosures, limit settlement cost increases, and require fee disclosure.

• The President has asked Secretary Paulson to examine the broad issues surrounding mortgage brokers and originators in order to possibly create a comprehensive mortgage broker registration system.

• Federal agencies, such as HUD, the Department of Justice, the Federal Trade Commission, and others, are aggressively pursuing those that engaged and engage in fraudulent practices to ensure they are punished.

• The President will create a Presidential Council On Financial Literacy composed of leading private sector individuals who can help promote financial literacy.

• The President will continue to support the efforts of public and private sector groups that are promoting financial literacy and providing foreclosure counseling. For example, the President's Budget proposes $120 million for NeighborWorks, which provides foreclosure workshops and counseling to borrowers. The President's FY 2008 Budget request includes $50 million for HUD's housing counseling program.

• The President Has Asked Secretary Paulson To Lead The President's Working Group On Financial Markets In Examining Some Of The Broader Market Issues Underlying The Recent Mortgage Problems. The President's Working Group on Financial Markets, (led by Treasury Secretary Paulson and composed of Federal Reserve Chairman Bernanke, SEC Chairman Cox, and Commodity Futures Trading Commission Acting Chairman Lukken) will examine underlying market issues that may be affecting the current mortgage problems.
  The group will examine:

  • The role of credit rating agencies and how their ratings are used in lending procedures, and
  • How securitization, the repackaging and selling of assets, has changed the mortgage industry and related business practices.

To view the text of the President's speech, please click here.

To view media coverage of the speech, please click on the following links.

Fox News

CNN

MSNBC

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Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, OH  and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 425 employees.  Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.