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President Obama May Start Subsidizing Mortgages

admin — Fri, 13 Feb 2009 05:10:02 +0000

Big news from Washington hit media today as it seems the Obama administration is working to put together a plan to help subsidize mortgages to help reduce the foreclosure count for homes. Their theory is that by helping to insure certain mortgage back debt, they will instill more confidence in banks and help allow them to start lending more. Just as news hit the public, the stock market shot up in its remaining 45 minutes to almost eliminate an earlier 3% deficit in the Dow.

So how can this help you in your problem to modify your loan? By helping to increase the liquidity of banks and help subsidize exisiting loans, this should help the banks become more cooperative in your loan modification. This will also be a big boost for home re-finances as well as the issuance of completely new loans all together. Most likely, the subsidation from the government will come with strings attached to the banks requiring them to be more cooperative in loan modification and other needs for financing. Click here to get your loan modified today!

Government Set To Announce New Plan To Buy Toxic Debt

admin — Tue, 10 Feb 2009 06:41:18 +0000

On Tuesday, February 10th, Secretary Geithner is set to unveil the new plan to help buy toxic assets from banks in order to build up the strength of their balance sheet. After a few weeks of consideration of different strategies, it seems like the treasury is going to introduce a program where they will encourage private equity to invest in troubled assets to help get them off bank’s books. To help encourage this, the government is offering protection of additional losses in the assets so that if they did continue to fall in price, the investor would be protected. Also, they are planning on allocating anywhere from $50-$100 billion of the remaining $350 billion in TARP funds to assets in foreclosure.

The Treasury thinks that $250-$500 billion of assets could be saved using this process and maybe even up to $1 trillion after the package is expanded. This directly relates to the process of loan modification, as the quicker banks are able to make their balance sheet’s stronger, the quicker and more they are able to assist you in your loan. Having the Treasury set to put this plan into action this week, we could see big movements in the financial sector that directly effect you and your mortgage. We here at Loan Modification Sites will keep you up to date on all the news that will enable you to find the best help for your loan.

Government May Consider Changing Current “Mark to Market” Accounting For Banks

admin — Fri, 06 Feb 2009 21:01:32 +0000

Recent news has been talking about the possibility of the Obama administration altering or doing away with the current “mark to market” accounting that is required to be used by banks at the current time. Mark to market accounting is the act of updating bank’s balance sheets with the present value of their assets, not compared to when it was first purchased, as what is usually done. Doing away with this, would most likely be a big boost for banks as their balance sheets would hold up in value much greater than they do now.

If this truly does happen, which we should know in a few days, it would mostly likely unfreeze some assets for banks and hopefully better the lending markets for a bit. This eventually benefits the consumer as banks would be more likely to work with loan modification and restructuring your loan. Stay tuned at Loan Modification Sites for more updates!