President speaks out on housing crisis domino effect
With the stimulus bill signed into law, President Barack Obama is now turning his attention to the housing crisis and rapidly deteriorating housing market.
In remarks to a crowd outside Phoenix, the president elaborated on the plan his administration will initiate to help homeowners facing foreclosure refinance their mortgages and to keep neighboring home values up, too.
Obama said that action is needed because sinking home values and job layoffs are resulting in mounting credit card debt for families and local businesses closing from lower community spending.
Restructuring and refinancing tools are intended for responsible homeowners, not speculators or others who have abused the system during the housing crisis, said President Obama.
According to his remarks, the plan "will give millions of families resigned to financial ruin a chance to rebuild. It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. And by bringing down the foreclosure rate, it will help to shore up housing prices for everybody. "
Obama's plan will also ease restrictions on Fannie Mae and Freddie Mac, permitting the agencies to refinance mortgages they already own or guarantee
Senate considers new credit card legislation
In an effort to stave off abusive credit card practices by lenders, Senator Chris Dodd has re-introduced new credit card legislation that would offer more consumer protection.
The senator from Connecticut serves as the Chairman of the Senate Committee on Banking, Housing, and Urban affairs.
The intentions of the Credit Card Accountability, Responsibility, and Disclosure Act is to help protect consumers from what many consider to be confusing, misleading and often predatory acts by credit card companies.
Given the increasing unemployment rate and stagnating employment opportunities, some families are turning to credit cards to stretch monthly budgets.
Dodd notes in remarks to the committee that even consumers with sound payment histories and personal credit rating reports are being affected by these lending practices.
"Banks, increasingly worried about taking more bad debt onto their balance sheets, are monitoring their credit card portfolios very closely - slashing credit limits, and increasing fees and interest rates, even for consumers who have held up their end of the bargain," Dodd said yesterday.
Review of these regulations comes as multiple economic indicators show consumer confidence in the economy and investing hit new lows.
