HUD can't help all homeowners
The Department of Housing and Urban Development met on whether all-government housing assistance programs would help struggling homeowners. Danielle Karson reports they may not have enough funds to face the problem.
Aerial view of housing development. (IStockphoto)
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Stacey Vanek-Smith: The Department of Housing and Urban Development wraps up its two-day summit today. At issue: whether all government housing assistance programs on the table would in fact help struggling homeowners. Danielle Karson reports.
Danielle Karson: HUD officials say there isn't a single solution to the housing crisis. The summit brings leaders from the housing and mortgage industries together with government officials to swap ideas.
HUD Spokesman Brian Sullivan:
Brian Sullivan: There's a lot of new tools to help counties, cities and states purchase foreclosed abandoned properties so they don't become sources of blight in their communities.
The feds are doling out $4 billion to help with the effort. They're also ramping up a $30 million program to help homeowners refinance high-interest loans. The Congressional Budget Office estimates the initiative will assist 400,000 households over the next three years.
But John Taylor, who heads the National Community Reinvestment Coalition, says it's too little, too late.
John Taylor: The problem is there just isn't the kinds of funds in there that's going to make a difference. It just doesn't match the magnitude of the problem.
Taylor says at least two million families are expected to face foreclose next year.
In Washington, I'm Danielle Karson for Marketplace.
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From herriman, UT, 10/08/2008
whoa!
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