By Donna Borak
From – National Mortgage News
A proposal by the Obama administration to help more struggling borrowers refinance into cheaper loans is prompting questions: Could it prompt an increase in interest rates, after a long period of low rates? And is this a program that can relieve the housing crunch, or just another Band-Aid?
The plan—announced in President Obama’s third State of the Union address—so far lacks much detail, although it would be paid for with a fee on large banks, and some expect it could even target loans not backed by Fannie Mae and Freddie Mac. But while some see benefits in such a broad scope for the program, others say it could be an administrative nightmare. Continue reading
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