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Obama’s mortgage relief and housing plan

The details on Obama’s new mortgage relief plan are out.  The key parts are the following:

• Mortgage must be a conventional, conforming loan (i.e. up to the new $729,00 level – No jumbos)
• Homes must be owner-occupied (no vacant or invesment homes qualify)
• No minimum or maximum LTV (does that mean 110% loans qualify? I do not know yet, but you can be in negative equity)
• Will bring debt to income ratio down to 38% by the lender
• The governemnt will kick in the rest to get homeowners down to 31%.
• Borrowers in bakruptcy are not automatically rejected
• If you default, you do not re-qualify.

See the video below for further details.

About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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