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Obama's Economic Plan

Obama's Economic Plan: Is It Really Working? Obama's plan to fix the economy began in 2009. Here's an analysis of how effective the plan has been as well as an overview of the two main problems that plague America today-unemployment and foreclosures. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 196 1.80 1.69 %24 Home Price's Appreciation (Average price in 2000 - $163,000) 11.5% 9.6% O 112 9.3% 6.3% 7.6% 4.6% Population's Unemployment Rate 5.8% 6.0% 5,5% 5.8% 5.1% 0.70 2.7% 4.7% 4.6% 0.70 0.66 0.64 0.54 0.59 -3.1% Number of New Foreclosures -3.7% FORECLOSURE (in millions) -41% U.S. Economic Facts -10.3% Obama's Plans nH Property Values A Unemployment Rate Rise of Values $ Loan Rates E Quantity of Foreclosures Decline of Values 2009 2006 Home Affordable Modification Program (HAMP) 2001 Mortgage cash flow declines. RESULTS RESULTS Federal Reserve lowered the federal funds rate 1 Trial launch: March 2009 target from 6.5% to 1,0%. Decreasing pressure on Many of the borrowers who were issued modifications early on quickly re-defaulted on their loans in this program. Low interest rates 2 consumers as the average household's wealth declines. & tax cuts. High risk tolerance 3 & leverage Bank losses on mortgages 3 retained, (borrowing to invest) Subprime mortgages. Second Lien Modification Program (2MP) 4 Bank capital levels depleted-bank failures Launch date: April 2009 occr. Only 3,500 borrowers have had their second mortgages fully extinguished by their second loan lenders. This program is expected to help one million or more. 2005 Federal Reserve rose the RESULTS interest rates to contain 2007 inflation. Liquidity crunch for RESULTS 1 2010 2 Housing prices decline. businesses. $ Inability to refinance homeowners' mortgages Harder to get loans - 2 higher interest rates for loans. Hardest Hit States Fund Mortgage delinquencies 4 and foreclosures become more common. Launch date: February, 2010 Fund provides programs to help homeowners who have lost jobs. It also reduces the mortgage principal in order to save borrowers who are deep underwater. 2008 RESULTS 1 The increasing number of foreclosures causes homes prices to decline. FORECLOSURE Home Affordable Foreclosure Alternatives (HAFA) 2 Higher Interest Rates For Loans Less Investments Unemployment FOR SALE Launch date: April, 2010 Less Loans Cold Financial Market Mortgage Delinquency For borrowers whose mortgages were denied a modification via HAMP. Few borrowers took advantage of the program or were ineligible before the launch of HAFA. Principal Reduction Alternative (PRA) Obama's Actual And Future Plans Launch date: June 2010 This program is for borrowers with loans that were not backed by Fannie Mae, Freddie Mac or insured by the FHA. It requires servicers to evaluate the benefit of reducing the mortgage principal for loans in which the balance has exceeded the value of the home by 15% or more. Home Affordable Unemployment Program (HAUP) Launch date: July 2010 Reduces or suspends mortgage payments up to three months for unemployed borrowers. 到 E MACHIHE FHA Short Refinance Launch date: September, 2010 The Future Helps borrowers who have remained current on their mortgage payments. 2011 How the Obama's Economic Plans Emergency Homeowner's Loan Program (EHLP) Mandatory Spending Cuts Affected the Mortgages Launch date: June, 2011 Launch date: Project Awaiting Approval Total mortgage loans in millions Offers free-interest loans to homeowners who have been hit with a job or income loss as well as reside in one of the 32 states not $580 billion. - Of the total cuts in mandatory spending, $248 billion will come out of Medicare. $1,838,482 $2,982,043 covered by the Hardest Hit States program. Tax Revenue Raised 1 4 Extended Forbearance for FHA loans By Tax Changes Launch date: July, 2011 Launch date: Project Awaiting Approval Extends the period of time unemployed homeowners with FHA-backed mortgages can skip payments or make smaller ones. Will provide $1,5 trillion for the federal government-pay partially for cuts in government spending. War Savings S107,591 $416,616 $127,870 $425,779 Launch date: Project Awaiting Approval $11 trillion - Reduction in spending in Iraq and Afghanistan over the next decade. 2008 2009 2010 Interest Savings $5 Obama's Government Launch date: Project Awaiting Approval Plans with good results $430 billion - Whenever policies are changed Freddie Mac to lower future deficits, those deficits are Plans with bad results reduced in part because of the interest costs that will be saved from less borrowing. Fannie Mae Sources: Federal Reserve Foreclosure Listings.com Freddie Mac Census Fannie Mae www.foreclosurelistings.com 88 .................. .. Obama's Economic Plan: Is It Really Working? Obama's plan to fix the economy began in 2009. Here's an analysis of how effective the plan has been as well as an overview of the two main problems that plague America today-unemployment and foreclosures. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 196 1.80 1.69 %24 Home Price's Appreciation (Average price in 2000 - $163,000) 11.5% 9.6% O 112 9.3% 6.3% 7.6% 4.6% Population's Unemployment Rate 5.8% 6.0% 5,5% 5.8% 5.1% 0.70 2.7% 4.7% 4.6% 0.70 0.66 0.64 0.54 0.59 -3.1% Number of New Foreclosures -3.7% FORECLOSURE (in millions) -41% U.S. Economic Facts -10.3% Obama's Plans nH Property Values A Unemployment Rate Rise of Values $ Loan Rates E Quantity of Foreclosures Decline of Values 2009 2006 Home Affordable Modification Program (HAMP) 2001 Mortgage cash flow declines. RESULTS RESULTS Federal Reserve lowered the federal funds rate 1 Trial launch: March 2009 target from 6.5% to 1,0%. Decreasing pressure on Many of the borrowers who were issued modifications early on quickly re-defaulted on their loans in this program. Low interest rates 2 consumers as the average household's wealth declines. & tax cuts. High risk tolerance 3 & leverage Bank losses on mortgages 3 retained, (borrowing to invest) Subprime mortgages. Second Lien Modification Program (2MP) 4 Bank capital levels depleted-bank failures Launch date: April 2009 occr. Only 3,500 borrowers have had their second mortgages fully extinguished by their second loan lenders. This program is expected to help one million or more. 2005 Federal Reserve rose the RESULTS interest rates to contain 2007 inflation. Liquidity crunch for RESULTS 1 2010 2 Housing prices decline. businesses. $ Inability to refinance homeowners' mortgages Harder to get loans - 2 higher interest rates for loans. Hardest Hit States Fund Mortgage delinquencies 4 and foreclosures become more common. Launch date: February, 2010 Fund provides programs to help homeowners who have lost jobs. It also reduces the mortgage principal in order to save borrowers who are deep underwater. 2008 RESULTS 1 The increasing number of foreclosures causes homes prices to decline. FORECLOSURE Home Affordable Foreclosure Alternatives (HAFA) 2 Higher Interest Rates For Loans Less Investments Unemployment FOR SALE Launch date: April, 2010 Less Loans Cold Financial Market Mortgage Delinquency For borrowers whose mortgages were denied a modification via HAMP. Few borrowers took advantage of the program or were ineligible before the launch of HAFA. Principal Reduction Alternative (PRA) Obama's Actual And Future Plans Launch date: June 2010 This program is for borrowers with loans that were not backed by Fannie Mae, Freddie Mac or insured by the FHA. It requires servicers to evaluate the benefit of reducing the mortgage principal for loans in which the balance has exceeded the value of the home by 15% or more. Home Affordable Unemployment Program (HAUP) Launch date: July 2010 Reduces or suspends mortgage payments up to three months for unemployed borrowers. 到 E MACHIHE FHA Short Refinance Launch date: September, 2010 The Future Helps borrowers who have remained current on their mortgage payments. 2011 How the Obama's Economic Plans Emergency Homeowner's Loan Program (EHLP) Mandatory Spending Cuts Affected the Mortgages Launch date: June, 2011 Launch date: Project Awaiting Approval Total mortgage loans in millions Offers free-interest loans to homeowners who have been hit with a job or income loss as well as reside in one of the 32 states not $580 billion. - Of the total cuts in mandatory spending, $248 billion will come out of Medicare. $1,838,482 $2,982,043 covered by the Hardest Hit States program. Tax Revenue Raised 1 4 Extended Forbearance for FHA loans By Tax Changes Launch date: July, 2011 Launch date: Project Awaiting Approval Extends the period of time unemployed homeowners with FHA-backed mortgages can skip payments or make smaller ones. Will provide $1,5 trillion for the federal government-pay partially for cuts in government spending. War Savings S107,591 $416,616 $127,870 $425,779 Launch date: Project Awaiting Approval $11 trillion - Reduction in spending in Iraq and Afghanistan over the next decade. 2008 2009 2010 Interest Savings $5 Obama's Government Launch date: Project Awaiting Approval Plans with good results $430 billion - Whenever policies are changed Freddie Mac to lower future deficits, those deficits are Plans with bad results reduced in part because of the interest costs that will be saved from less borrowing. Fannie Mae Sources: Federal Reserve Foreclosure Listings.com Freddie Mac Census Fannie Mae www.foreclosurelistings.com 88 .................. .. Obama's Economic Plan: Is It Really Working? Obama's plan to fix the economy began in 2009. Here's an analysis of how effective the plan has been as well as an overview of the two main problems that plague America today-unemployment and foreclosures. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 196 1.80 1.69 %24 Home Price's Appreciation (Average price in 2000 - $163,000) 11.5% 9.6% O 112 9.3% 6.3% 7.6% 4.6% Population's Unemployment Rate 5.8% 6.0% 5,5% 5.8% 5.1% 0.70 2.7% 4.7% 4.6% 0.70 0.66 0.64 0.54 0.59 -3.1% Number of New Foreclosures -3.7% FORECLOSURE (in millions) -41% U.S. Economic Facts -10.3% Obama's Plans nH Property Values A Unemployment Rate Rise of Values $ Loan Rates E Quantity of Foreclosures Decline of Values 2009 2006 Home Affordable Modification Program (HAMP) 2001 Mortgage cash flow declines. RESULTS RESULTS Federal Reserve lowered the federal funds rate 1 Trial launch: March 2009 target from 6.5% to 1,0%. Decreasing pressure on Many of the borrowers who were issued modifications early on quickly re-defaulted on their loans in this program. Low interest rates 2 consumers as the average household's wealth declines. & tax cuts. High risk tolerance 3 & leverage Bank losses on mortgages 3 retained, (borrowing to invest) Subprime mortgages. Second Lien Modification Program (2MP) 4 Bank capital levels depleted-bank failures Launch date: April 2009 occr. Only 3,500 borrowers have had their second mortgages fully extinguished by their second loan lenders. This program is expected to help one million or more. 2005 Federal Reserve rose the RESULTS interest rates to contain 2007 inflation. Liquidity crunch for RESULTS 1 2010 2 Housing prices decline. businesses. $ Inability to refinance homeowners' mortgages Harder to get loans - 2 higher interest rates for loans. Hardest Hit States Fund Mortgage delinquencies 4 and foreclosures become more common. Launch date: February, 2010 Fund provides programs to help homeowners who have lost jobs. It also reduces the mortgage principal in order to save borrowers who are deep underwater. 2008 RESULTS 1 The increasing number of foreclosures causes homes prices to decline. FORECLOSURE Home Affordable Foreclosure Alternatives (HAFA) 2 Higher Interest Rates For Loans Less Investments Unemployment FOR SALE Launch date: April, 2010 Less Loans Cold Financial Market Mortgage Delinquency For borrowers whose mortgages were denied a modification via HAMP. Few borrowers took advantage of the program or were ineligible before the launch of HAFA. Principal Reduction Alternative (PRA) Obama's Actual And Future Plans Launch date: June 2010 This program is for borrowers with loans that were not backed by Fannie Mae, Freddie Mac or insured by the FHA. It requires servicers to evaluate the benefit of reducing the mortgage principal for loans in which the balance has exceeded the value of the home by 15% or more. Home Affordable Unemployment Program (HAUP) Launch date: July 2010 Reduces or suspends mortgage payments up to three months for unemployed borrowers. 到 E MACHIHE FHA Short Refinance Launch date: September, 2010 The Future Helps borrowers who have remained current on their mortgage payments. 2011 How the Obama's Economic Plans Emergency Homeowner's Loan Program (EHLP) Mandatory Spending Cuts Affected the Mortgages Launch date: June, 2011 Launch date: Project Awaiting Approval Total mortgage loans in millions Offers free-interest loans to homeowners who have been hit with a job or income loss as well as reside in one of the 32 states not $580 billion. - Of the total cuts in mandatory spending, $248 billion will come out of Medicare. $1,838,482 $2,982,043 covered by the Hardest Hit States program. Tax Revenue Raised 1 4 Extended Forbearance for FHA loans By Tax Changes Launch date: July, 2011 Launch date: Project Awaiting Approval Extends the period of time unemployed homeowners with FHA-backed mortgages can skip payments or make smaller ones. Will provide $1,5 trillion for the federal government-pay partially for cuts in government spending. War Savings S107,591 $416,616 $127,870 $425,779 Launch date: Project Awaiting Approval $11 trillion - Reduction in spending in Iraq and Afghanistan over the next decade. 2008 2009 2010 Interest Savings $5 Obama's Government Launch date: Project Awaiting Approval Plans with good results $430 billion - Whenever policies are changed Freddie Mac to lower future deficits, those deficits are Plans with bad results reduced in part because of the interest costs that will be saved from less borrowing. Fannie Mae Sources: Federal Reserve Foreclosure Listings.com Freddie Mac Census Fannie Mae www.foreclosurelistings.com 88 .................. .. Obama's Economic Plan: Is It Really Working? Obama's plan to fix the economy began in 2009. Here's an analysis of how effective the plan has been as well as an overview of the two main problems that plague America today-unemployment and foreclosures. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 196 1.80 1.69 %24 Home Price's Appreciation (Average price in 2000 - $163,000) 11.5% 9.6% O 112 9.3% 6.3% 7.6% 4.6% Population's Unemployment Rate 5.8% 6.0% 5,5% 5.8% 5.1% 0.70 2.7% 4.7% 4.6% 0.70 0.66 0.64 0.54 0.59 -3.1% Number of New Foreclosures -3.7% FORECLOSURE (in millions) -41% U.S. Economic Facts -10.3% Obama's Plans nH Property Values A Unemployment Rate Rise of Values $ Loan Rates E Quantity of Foreclosures Decline of Values 2009 2006 Home Affordable Modification Program (HAMP) 2001 Mortgage cash flow declines. RESULTS RESULTS Federal Reserve lowered the federal funds rate 1 Trial launch: March 2009 target from 6.5% to 1,0%. Decreasing pressure on Many of the borrowers who were issued modifications early on quickly re-defaulted on their loans in this program. Low interest rates 2 consumers as the average household's wealth declines. & tax cuts. High risk tolerance 3 & leverage Bank losses on mortgages 3 retained, (borrowing to invest) Subprime mortgages. Second Lien Modification Program (2MP) 4 Bank capital levels depleted-bank failures Launch date: April 2009 occr. Only 3,500 borrowers have had their second mortgages fully extinguished by their second loan lenders. This program is expected to help one million or more. 2005 Federal Reserve rose the RESULTS interest rates to contain 2007 inflation. Liquidity crunch for RESULTS 1 2010 2 Housing prices decline. businesses. $ Inability to refinance homeowners' mortgages Harder to get loans - 2 higher interest rates for loans. Hardest Hit States Fund Mortgage delinquencies 4 and foreclosures become more common. Launch date: February, 2010 Fund provides programs to help homeowners who have lost jobs. It also reduces the mortgage principal in order to save borrowers who are deep underwater. 2008 RESULTS 1 The increasing number of foreclosures causes homes prices to decline. FORECLOSURE Home Affordable Foreclosure Alternatives (HAFA) 2 Higher Interest Rates For Loans Less Investments Unemployment FOR SALE Launch date: April, 2010 Less Loans Cold Financial Market Mortgage Delinquency For borrowers whose mortgages were denied a modification via HAMP. Few borrowers took advantage of the program or were ineligible before the launch of HAFA. Principal Reduction Alternative (PRA) Obama's Actual And Future Plans Launch date: June 2010 This program is for borrowers with loans that were not backed by Fannie Mae, Freddie Mac or insured by the FHA. It requires servicers to evaluate the benefit of reducing the mortgage principal for loans in which the balance has exceeded the value of the home by 15% or more. Home Affordable Unemployment Program (HAUP) Launch date: July 2010 Reduces or suspends mortgage payments up to three months for unemployed borrowers. 到 E MACHIHE FHA Short Refinance Launch date: September, 2010 The Future Helps borrowers who have remained current on their mortgage payments. 2011 How the Obama's Economic Plans Emergency Homeowner's Loan Program (EHLP) Mandatory Spending Cuts Affected the Mortgages Launch date: June, 2011 Launch date: Project Awaiting Approval Total mortgage loans in millions Offers free-interest loans to homeowners who have been hit with a job or income loss as well as reside in one of the 32 states not $580 billion. - Of the total cuts in mandatory spending, $248 billion will come out of Medicare. $1,838,482 $2,982,043 covered by the Hardest Hit States program. Tax Revenue Raised 1 4 Extended Forbearance for FHA loans By Tax Changes Launch date: July, 2011 Launch date: Project Awaiting Approval Extends the period of time unemployed homeowners with FHA-backed mortgages can skip payments or make smaller ones. Will provide $1,5 trillion for the federal government-pay partially for cuts in government spending. War Savings S107,591 $416,616 $127,870 $425,779 Launch date: Project Awaiting Approval $11 trillion - Reduction in spending in Iraq and Afghanistan over the next decade. 2008 2009 2010 Interest Savings $5 Obama's Government Launch date: Project Awaiting Approval Plans with good results $430 billion - Whenever policies are changed Freddie Mac to lower future deficits, those deficits are Plans with bad results reduced in part because of the interest costs that will be saved from less borrowing. Fannie Mae Sources: Federal Reserve Foreclosure Listings.com Freddie Mac Census Fannie Mae www.foreclosurelistings.com 88 .................. .. Obama's Economic Plan: Is It Really Working? Obama's plan to fix the economy began in 2009. Here's an analysis of how effective the plan has been as well as an overview of the two main problems that plague America today-unemployment and foreclosures. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 196 1.80 1.69 %24 Home Price's Appreciation (Average price in 2000 - $163,000) 11.5% 9.6% O 112 9.3% 6.3% 7.6% 4.6% Population's Unemployment Rate 5.8% 6.0% 5,5% 5.8% 5.1% 0.70 2.7% 4.7% 4.6% 0.70 0.66 0.64 0.54 0.59 -3.1% Number of New Foreclosures -3.7% FORECLOSURE (in millions) -41% U.S. Economic Facts -10.3% Obama's Plans nH Property Values A Unemployment Rate Rise of Values $ Loan Rates E Quantity of Foreclosures Decline of Values 2009 2006 Home Affordable Modification Program (HAMP) 2001 Mortgage cash flow declines. RESULTS RESULTS Federal Reserve lowered the federal funds rate 1 Trial launch: March 2009 target from 6.5% to 1,0%. Decreasing pressure on Many of the borrowers who were issued modifications early on quickly re-defaulted on their loans in this program. Low interest rates 2 consumers as the average household's wealth declines. & tax cuts. High risk tolerance 3 & leverage Bank losses on mortgages 3 retained, (borrowing to invest) Subprime mortgages. Second Lien Modification Program (2MP) 4 Bank capital levels depleted-bank failures Launch date: April 2009 occr. Only 3,500 borrowers have had their second mortgages fully extinguished by their second loan lenders. This program is expected to help one million or more. 2005 Federal Reserve rose the RESULTS interest rates to contain 2007 inflation. Liquidity crunch for RESULTS 1 2010 2 Housing prices decline. businesses. $ Inability to refinance homeowners' mortgages Harder to get loans - 2 higher interest rates for loans. Hardest Hit States Fund Mortgage delinquencies 4 and foreclosures become more common. Launch date: February, 2010 Fund provides programs to help homeowners who have lost jobs. It also reduces the mortgage principal in order to save borrowers who are deep underwater. 2008 RESULTS 1 The increasing number of foreclosures causes homes prices to decline. FORECLOSURE Home Affordable Foreclosure Alternatives (HAFA) 2 Higher Interest Rates For Loans Less Investments Unemployment FOR SALE Launch date: April, 2010 Less Loans Cold Financial Market Mortgage Delinquency For borrowers whose mortgages were denied a modification via HAMP. Few borrowers took advantage of the program or were ineligible before the launch of HAFA. Principal Reduction Alternative (PRA) Obama's Actual And Future Plans Launch date: June 2010 This program is for borrowers with loans that were not backed by Fannie Mae, Freddie Mac or insured by the FHA. It requires servicers to evaluate the benefit of reducing the mortgage principal for loans in which the balance has exceeded the value of the home by 15% or more. Home Affordable Unemployment Program (HAUP) Launch date: July 2010 Reduces or suspends mortgage payments up to three months for unemployed borrowers. 到 E MACHIHE FHA Short Refinance Launch date: September, 2010 The Future Helps borrowers who have remained current on their mortgage payments. 2011 How the Obama's Economic Plans Emergency Homeowner's Loan Program (EHLP) Mandatory Spending Cuts Affected the Mortgages Launch date: June, 2011 Launch date: Project Awaiting Approval Total mortgage loans in millions Offers free-interest loans to homeowners who have been hit with a job or income loss as well as reside in one of the 32 states not $580 billion. - Of the total cuts in mandatory spending, $248 billion will come out of Medicare. $1,838,482 $2,982,043 covered by the Hardest Hit States program. Tax Revenue Raised 1 4 Extended Forbearance for FHA loans By Tax Changes Launch date: July, 2011 Launch date: Project Awaiting Approval Extends the period of time unemployed homeowners with FHA-backed mortgages can skip payments or make smaller ones. Will provide $1,5 trillion for the federal government-pay partially for cuts in government spending. War Savings S107,591 $416,616 $127,870 $425,779 Launch date: Project Awaiting Approval $11 trillion - Reduction in spending in Iraq and Afghanistan over the next decade. 2008 2009 2010 Interest Savings $5 Obama's Government Launch date: Project Awaiting Approval Plans with good results $430 billion - Whenever policies are changed Freddie Mac to lower future deficits, those deficits are Plans with bad results reduced in part because of the interest costs that will be saved from less borrowing. Fannie Mae Sources: Federal Reserve Foreclosure Listings.com Freddie Mac Census Fannie Mae www.foreclosurelistings.com 88 .................. .. Obama's Economic Plan: Is It Really Working? Obama's plan to fix the economy began in 2009. Here's an analysis of how effective the plan has been as well as an overview of the two main problems that plague America today-unemployment and foreclosures. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 196 1.80 1.69 %24 Home Price's Appreciation (Average price in 2000 - $163,000) 11.5% 9.6% O 112 9.3% 6.3% 7.6% 4.6% Population's Unemployment Rate 5.8% 6.0% 5,5% 5.8% 5.1% 0.70 2.7% 4.7% 4.6% 0.70 0.66 0.64 0.54 0.59 -3.1% Number of New Foreclosures -3.7% FORECLOSURE (in millions) -41% U.S. Economic Facts -10.3% Obama's Plans nH Property Values A Unemployment Rate Rise of Values $ Loan Rates E Quantity of Foreclosures Decline of Values 2009 2006 Home Affordable Modification Program (HAMP) 2001 Mortgage cash flow declines. RESULTS RESULTS Federal Reserve lowered the federal funds rate 1 Trial launch: March 2009 target from 6.5% to 1,0%. Decreasing pressure on Many of the borrowers who were issued modifications early on quickly re-defaulted on their loans in this program. Low interest rates 2 consumers as the average household's wealth declines. & tax cuts. High risk tolerance 3 & leverage Bank losses on mortgages 3 retained, (borrowing to invest) Subprime mortgages. Second Lien Modification Program (2MP) 4 Bank capital levels depleted-bank failures Launch date: April 2009 occr. Only 3,500 borrowers have had their second mortgages fully extinguished by their second loan lenders. This program is expected to help one million or more. 2005 Federal Reserve rose the RESULTS interest rates to contain 2007 inflation. Liquidity crunch for RESULTS 1 2010 2 Housing prices decline. businesses. $ Inability to refinance homeowners' mortgages Harder to get loans - 2 higher interest rates for loans. Hardest Hit States Fund Mortgage delinquencies 4 and foreclosures become more common. Launch date: February, 2010 Fund provides programs to help homeowners who have lost jobs. It also reduces the mortgage principal in order to save borrowers who are deep underwater. 2008 RESULTS 1 The increasing number of foreclosures causes homes prices to decline. FORECLOSURE Home Affordable Foreclosure Alternatives (HAFA) 2 Higher Interest Rates For Loans Less Investments Unemployment FOR SALE Launch date: April, 2010 Less Loans Cold Financial Market Mortgage Delinquency For borrowers whose mortgages were denied a modification via HAMP. Few borrowers took advantage of the program or were ineligible before the launch of HAFA. Principal Reduction Alternative (PRA) Obama's Actual And Future Plans Launch date: June 2010 This program is for borrowers with loans that were not backed by Fannie Mae, Freddie Mac or insured by the FHA. It requires servicers to evaluate the benefit of reducing the mortgage principal for loans in which the balance has exceeded the value of the home by 15% or more. Home Affordable Unemployment Program (HAUP) Launch date: July 2010 Reduces or suspends mortgage payments up to three months for unemployed borrowers. 到 E MACHIHE FHA Short Refinance Launch date: September, 2010 The Future Helps borrowers who have remained current on their mortgage payments. 2011 How the Obama's Economic Plans Emergency Homeowner's Loan Program (EHLP) Mandatory Spending Cuts Affected the Mortgages Launch date: June, 2011 Launch date: Project Awaiting Approval Total mortgage loans in millions Offers free-interest loans to homeowners who have been hit with a job or income loss as well as reside in one of the 32 states not $580 billion. - Of the total cuts in mandatory spending, $248 billion will come out of Medicare. $1,838,482 $2,982,043 covered by the Hardest Hit States program. Tax Revenue Raised 1 4 Extended Forbearance for FHA loans By Tax Changes Launch date: July, 2011 Launch date: Project Awaiting Approval Extends the period of time unemployed homeowners with FHA-backed mortgages can skip payments or make smaller ones. Will provide $1,5 trillion for the federal government-pay partially for cuts in government spending. War Savings S107,591 $416,616 $127,870 $425,779 Launch date: Project Awaiting Approval $11 trillion - Reduction in spending in Iraq and Afghanistan over the next decade. 2008 2009 2010 Interest Savings $5 Obama's Government Launch date: Project Awaiting Approval Plans with good results $430 billion - Whenever policies are changed Freddie Mac to lower future deficits, those deficits are Plans with bad results reduced in part because of the interest costs that will be saved from less borrowing. Fannie Mae Sources: Federal Reserve Foreclosure Listings.com Freddie Mac Census Fannie Mae www.foreclosurelistings.com 88 .................. ..

Obama's Economic Plan

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Balance of Obama's economic plan, how it's working for Americans.

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