From Bloomberg with respect to a new plan to save the housing market and economy:
U.S. regulators will let qualified homeowners refinance mortgages regardless of how much their houses have dropped in value, expanding a government effort to chip away at one of the economy’s most unyielding problems.
The Federal Housing Finance Agency will also enhance the Home Affordable Refinance Program by eliminating some fees, reducing others and waiving some risk for lenders, Edward J. DeMarco, the agency’s acting director, said today.
And the paragraph at which readers might start raising an eyebrow or two:
The changes should encourage more lenders to participate, DeMarco said. Lenders can’t be faulted for a bad appraisal, for example, because under the new program they won’t be required in most cases, he said.
∙ U.S. Plan Expands to Underwater Borrowers [Bloomberg]