Today the Treasury and the Federal Reserve are announcing a facility to finance issuance of non-mortgage asset-backed paper in order to support lending to consumers and small businesses which is vital to our economy. Issuance of ABS in these areas reached $240 billion in 2007, but credit market stresses led to a steep decline in the third quarter of 2008, and the market essentially came to a halt in October. As a result, millions of Americans cannot find affordable financing for their basic credit needs. Credit card rates are rising, making it more expensive for families to finance everyday purchases. This lack of affordable consumer credit undermines consumer spending and as a result weakens our economy. Mortgage rates remain low, but the need for more obtainable credit has become more evident. FHA loan programs continue to offer new opportunities for existing homeowners to refinance and new home-buyers to finance homes.
To address this need and support the return of consumer lending, the Treasury will provided 20 billion of credit protection to the Federal Reserve in connection with its $200 billion term asset-backed securities loan facility. By providing liquidity to issuers of consumer asset-backed paper, the Federal Reserve facility will enable a broad range of institutions to step up their lending, enabling borrowers to have access to reduced cost consumer finance, military home financing and small business loans. Read more of Paulson’s speech at Paulson Announces Mortgage Loan Programs with More Credit
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Pingback by Mortgage Lenders Nationwide » Paulson Announces Increased Credit … | refinancementcredit.com — December 3, 2008 @ 10:49 am
There definitely are companies out there that provide great mortgage loan rates. It’s important to shop around and make sure that you choose the right mortgage lender that best fits your needs. Consider a loan modification if you are turned down for bad crdit scores or no equity. There are many homeowners with bad credit who have been successful modifying their mortgage.
Comment by mortgage loan modification — December 3, 2008 @ 1:05 pm
The Fed dropped the interest rates again to spur more mortgage lending activity. This creates a new opportunity for homeowners to find affordable mortgage refinancing.
Pingback by Mortgage Refinance — December 3, 2008 @ 7:15 pm
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Pingback by va home loans — December 3, 2008 @ 9:38 pm
FHA home mortgage loans…
Thanks for posting our FHA report indicating the benefits of utilizing FHA for purchase money transactions. Many homeowners are still able to qualify for these bad credit loans despite fewer lenders being in business.
Trackback by FHA home mortgage loans — December 8, 2008 @ 7:27 pm