David Kirkpatrick

August 29, 2010

The housing market continues to suffer

And the White House is prepping to announce new initiatives to keep homeowners in their houses and forestall a new spate of foreclosures. The real-world effects of this recession are still ongoing, regardless what direction any economic indicators may point, and the help Main Street is getting from DC feels like a trickle here, a trickle there. So much for the “summer of recovery.”

From the link:

Housing and Urban Development Secretary Shaun Donovan revealed to CNN Friday that the Obama administration plans next week to unveil two new initiatives to deal with the crumbling housing market, and he left the door open to also reviving the expired $8,000 tax credit for first-time home buyers that had been propping up the industry.

“We’re going to be rolling out an FHA refinancing effort to help borrowers who are under water in their homes get above water,” Donovan said in an exclusive interview taped for CNN’s “State of the Union with Candy Crowley” on Sunday. “And second, we’re launching an emergency homeowners’ loan program for unemployed borrowers to be able to stay in their homes.”

The swift action being pushed by President Obama’s housing chief come in response to awful news in the housing industry this week, starting with Tuesday’s revelation that existing home sales hit their lowest level in over a decade, declining by over 27 percent during the month.

Update: this comes from today’s Playbook — brunch edition:

An administration official e-mails: “These are not new. He said ‘launching’ because they are previously introduced, but have not yet hit the market. The FHA short refi program was announced in March, and will launch in early September. The emergency homeowner emergency loan program, which was included in the Frank-Dodd bill (HUD put out in a release and conf. call two weeks ago), will be launched in October.”

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