President Barack Obama announced a new plan to provide veterans and active members of the military with mortgage relief in the form of government-backed loans, his latest attempt to reinvigorate the housing sector, The Washington Times reported.
According to the newspaper, the President laid out his housing-relief proposal in his first full news conference of the year. Obama specifically spoke to the veterans and service members whose deployments and mandatory moves have made them particularly vulnerable to the pitfalls of the housing crisis.
The Times reported that the President's plan reduces fees for qualifying borrowers with Federal Housing Authority-insured loans who want to refinance their home at a lower rate. This move would build on the landmark housing settlement with major mortgage lenders by the White House and 49 State attorneys general last month.
The Washington Post reported that Obama also outlined a new agreement with banks to review foreclosures for members of the military, as deals that took place since 2006 will be looked at and compensation may be provided to anyone who wrongfully lost their home.