Home Mortgage Industry Still in Crisis
It seems that after all this time of implementing programs designed to rescue home mortgage problems, President Barack Obama, together with all the homeowners across the country, sees not much improvement in the housing industry.
The program had the government giving banks funds necessary to help them reach out to troubled homeowners. It seems that the big financial institutions are not using the money given to them in the right way.
According to the Wall Street Journal, the Mortgage Bankers Association slashed its forecast by 27 percent in terms of mortgage lending. This deflates the hope of Americans to recover from the economic slump, as they expect to be given more opportunities to get a home mortgage refinance.
Aside from the weak mortgage market, another problem that hinders the country from recovering from the economic crisis is that homeowners continue to lose their jobs. The administration tried to address this issue, however, by creating job stimulus packages to help families and homeowners stay in their homes and avoid foreclosure.
Local and state governments have been forced to get rid of a lot of their employees because of large budget cuts. As a result, workers suddenly lose their source of income and payment for their home mortgage. Even if they choose to refinance, they would still be not able to pay once until they find a new job.
California, for instance, could not get a $5.5 billion guarantee from the Obama administration for short-term notes to help companies retain their employees. This is very little compares to the $55 billion given to Citigroup to help them survive the crisis.
According to a report from the Federal Reserve, seven consecutive quarters saw a decline in household wealth. This also translates to Americans being $14 trillion poorer. A lot of families who were once part of the middle class now belong to the poor segment of the economy.
Home mortgage refinancing should have been solving a lot of problems of the regular American family. However, it just seems that it is not enough. There are simply a lot of problems that face the American, and with the failure of the government to help, it seems that there is not much to be done.
