Republicans in the House Financial Services Committee voted Thursday to end two foreclosure programs that they argue haven’t done enough to help struggling home owners.
One program at risk is aimed at helping borrowers who owe more than their homes are worth to refinance into 30-year fixed rate mortgages backed by the Federal Housing Administration, which is known as the FHA’s short refinance program. The other program is aimed at helping unemployed home owners by allowing them to make payments on their homes for up to two years.
A vote to terminate the two programs is expected to go before the full House for a vote next week. The effort will likely fail once it reaches the Democrat-controlled Senate, Reuters News reports.
Meanwhile, Republicans have delayed a vote to end two other housing aid programs: The Home Affordable Modification Program (HAMP), another foreclosure prevention program, as well as a program designed to help local and state governments stabilize neighborhoods hard hit by the foreclosure crisis.
Source: “Republicans Take Steps to Kill Obama Mortgage Aid,” Reuters (March 3, 2011)