Obama is pumping money into states hit the hardest by the mortgage crisis. The Los Angeles Times reports:

“Under the new policy, $1.5 billion that had been reserved for the bank bailout will be rerouted to five states that have seen housing prices drop more than 20% since 2006: Nevada, California, Michigan, Florida and Arizona.

The money will go toward homeowners who have lost their jobs, owe more than their houses are worth or cannot afford to make monthly payments.”

The new program is designed to help the people who have suffered from the mortgage crisis rather than give more to banks that have already recieved bailouts. Hopefully this will prove more successful than the Making Home Affordable mortgage modification program (many were excited, few have been able to get coherent answers from any bank…)

See Also:

Non-Conforming Bank Loans

Tags | mortgage crisis, Obama