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Released: January 26, 2012

Obama initiatives to address foreclosure crisis face hurdles

Source: Jim Puzzanghera & Alejandro Lazo, L.A. Times (Free Registration)

Two new initiatives from President Obama to address the foreclosure crisis — more help for struggling homeowners and aggressive investigations of financial firms — face significant hurdles as the nation's real estate troubles linger in a volatile election year. A new refinancing plan that expands on an existing initiative would allow homeowners who are current on their mortgage payments to retool their loans and save as much as $3,000 a year on payments. This expansion would be paid for by a new tax on large banks that Obama originally proposed in 2010 that has gone nowhere in Congress — and is unlikely to be approved by Republicans facing reelection in the fall. The new investigative effort, to be co-chaired by New York Atty. Gen. Eric Schneiderman and four federal officials, will try to coordinate a number of existing federal and state probes into mortgage practices that led to the financial crisis.

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