Political News

Obama to talk housing in year's first news conference

Posted March 6, 2012

— President Barack Obama is aiming mortgage relief at members of the military as well as homeowners with government-insured loans, the administration's latest efforts to address a persistent housing crisis.

In his first full news conference of the year Tuesday, Obama is expected to announce plans to let borrowers with mortgages insured by the Federal Housing Administration refinance at lower rates, saving the average homeowner more than $1,000 a year. Obama will also detail an agreement with major lenders to compensate service members and veterans who were wrongfully foreclosed upon or denied lower interest rates.

A senior administration official described Obama's proposals to The Associated Press on the condition of anonymity to discuss them ahead of the announcement.

Obama is holding the news conference in the midst of a modestly improving economy, but international challenges as well as a stubbornly depressed housing market remain threats to the current recovery and to his presidency.

On Wednesday, Obama will visit Charlotte and is expected to talk about the economy again.

Log onto WRAL.com to see both speeches LIVE. 

The news conference airs at 1 p.m. Tuesday and the Charlotte speech at 1 p.m. Wednesday.

North Carolina is a crucial state in President Barack Obama's re-election strategy, and his administration has stepped up its presence here.

Obama was last here on a Dec. 14 visit to Fort Bragg, and before that, he spent two days in western North Carolina in October. As well, First Lady Michelle Obama came to Raleigh last Friday to meet with military families and host a Democratic fundraiser, while Vice President Joe Biden visited Davidson County Community College on Feb. 24.

Obama has not held a full news conference since November. The White House scheduled this one on the same day as the 10-state Super Tuesday Republican presidential nominating contests. While aides insisted the timing was coincidental, it follows a pattern of Obama seeking the limelight when the attention is on the GOP.

The news conference comes amid a new sense of optimism at the White House. Obama's public approval ratings have inched up close to 50 percent. The president recently won an extension of a payroll tax cut that was a main element of his jobs plan for 2012. Economic signals suggest a recovery that is taking hold.

Still, he will probably face questions about the pace of the recovery. The unemployment rate in January was 8.3 percent, the highest it has been in an election year since the Great Depression. With rising gasoline prices threatening to slow the economy, Obama has also faced attacks from Republicans over his energy policy.

Iran's nuclear ambitions will also command attention in the aftermath of his meeting Monday with Israeli Prime Minister Benjamin Netanyahu. Tension over Iran has already contributed to higher oil prices, and Israel's threats of pre-emptive military strikes to prevent Tehran from building a nuclear bomb have dominated Washington discourse for weeks.

Other developments in the Middle East, where turmoil has soured some of the promise of last year's Arab Spring, are also likely to be addressed. Syria's bloody crackdown on protesters has increased pressure on Obama to intervene. Republican Sen. John McCain on Monday urged the United States to launch airstrikes against Syrian President Bashar Assad's regime to force him out of power.

Under the housing plans Obama was to announce Tuesday, FHA-insured borrowers would be able to refinance their loans at half the fee that the FHA currently charges. FHA borrowers who want to refinance now must pay a fee of 1.15 percent of their balance every year. Officials say those fees make refinancing unappealing to many borrowers. The new plan will reduce that charge to 0.55 percent.

With mortgage rates at about 4 percent, the administration estimates a typical FHA borrower with $175,000 still owed on a home could reduce monthly payments to $915 a month and save $100 a month more than the borrower would have under current FHA fees.

Though 2 million to 3 million borrowers would be eligible, the administration official would not speculate how many would actually seek to benefit from the program. The FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. The loans typically go to homeowners who do not have enough equity to qualify for standard mortgages. It is the largest insurer of mortgages in the world.

For service members and veterans, Obama will announce that major lenders will review foreclosures to determine whether they were done properly. If wrongly foreclosed upon, service members and veterans would be paid their lost equity and also be entitled to an additional $116,785 in compensation. That was a figure reached through an agreement with major lenders by the federal government and 49 state attorneys general.

Under the agreement, the lenders also would compensate service members who lost value in their homes when they were forced to sell them due to a military reassignment.


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  • Obama 2012 Mar 6, 2012

    Determined is at PROBOARDS- nevermind, I guess the guy you were quoting is dumb.

  • Obama 2012 Mar 6, 2012

    "Determined is at PROBOARDS"- funny, coming from someone too dumb to spell "goes."

  • Zorg Mar 6, 2012

    "People use to sit up and want to hear what the president of the US had to say, but not now..."


  • Zorg Mar 6, 2012

    "All I did was post a fact to correct the obvious misinformation posted by someone else.'

    It's admirable that you even bother. They don't care.

  • Determined is at PROBOARDS Mar 6, 2012

    Obama speaks on the economy and the dow gose down 190 points, so far ... imagine that !!

    Obama becomes president and the Dow goes UP 5,000 points (so far!)- IMAGINE THAT!

  • lindakcreech Mar 6, 2012

    If I see this man on tv one more time, I will scream. He has disgraced the white house. People use to sit up and want to hear what the president of the US had to say, but not now, this guy is on tv over and over and over and what is important to him is being on the Jay Leno show and Saturday Night Live.

  • WolfPackAlum Mar 6, 2012

    >>"You look at these rising numbers and are fooled into believing that they automatically paint a positive picture but the hidden truth is being disguised"

    I never said everything was positive. All I did was post a fact to correct the obvious misinformation posted by someone else. Not sure why you have such an issue with it.

  • fatchanceimwrong Mar 6, 2012

    This is all part of a long-term plan to "spread the wealth". Here are some examples:

    - F&F laid out mortgage guidelines that allowed people to qualify for mortgages they could not afford. Banks were forced to offer them to every applicant or face discrimination charges.

    - F&F knew what they were doing and knew what would happen to the housing market. Their plan in the beginning was to let this happen and then bail them out by throwing the banks under the bus, which is what they have set the banks up for over the past few years....those mean ol' banks.

    The end result is that the people who bought houses they could not afford to pay for now will still own those houses because the mean ol' banks will be forced to forego interest that they are contractually owed in order to make the payments more affordable on houses they couldn't afford in the first place.

    It's just another form of entitlements, just like the cash for clunkers program.

    It's all a sham.

  • Zorg Mar 6, 2012

    "Every liberal wants the US to be a welfare state. They want people dependent on the government for everything."


  • heelbilly Mar 6, 2012

    Obama speaks on the economy and the dow gose down 190 points, so far ... imagine that !!