The housing market suffered a dramatic collapse caused by irresponsible lenders who tricked buyers into signing subprime loans in order to bundle these loans into off-balance sheet securities. To address this crisis, President Obama and his Administration have taken a broad set of actions to stabilize the housing market and help responsible American homeowners.
How to Qualify for a Refinance
These reforms hold Wall Street accountable and ensure that responsibility is rewarded and everyone, from Wall Street to main street, plays by the same rules.
Recently, stress in the financial system had severely reduced the supply of mortgage credit, limiting the ability of Americans to buy homes or refinance mortgages. Millions of responsible families who had made their monthly payments saw their property values fall. They also found themselves unable to refinance at lower mortgage rates. That’s why, since President Obama’s first days in office, his Administration has taken the following actions to strengthen the housing market and help responsible homeowners regain the stability and security they had in their homes.
Helping families refinance their mortgage to save thousands of dollars each year: The Obama administration has made it easier for borrowers who are current on their federally backed mortgages—including those who owe more than their homes are worth—to take advantage of refinancing at today’s historically low interest rates.
