California REALTORS® applaud Obama’s proposal to help troubled homeowners

LOS ANGELES (Feb. 2) – The CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) applauds President Obama’s proposal to help millions of underwater homeowners who are current on their mortgage to refinance.

“We are pleased that President Obama understands that a recovery in the housing market is essential to a recovery in the nation’s economy,” said C.A.R. President LeFrancis Arnold. “Allowing homeowners whose homes are not backed by Fannie Mae and Freddie Mac to refinance could benefit additional homeowners who are struggling to keep up with their mortgage payments and help thousands of California families who are paying far above the current rate.”

President Obama’s proposal would help eligible, underwater homeowners who are current on their mortgage payments to refinance or modify their loan into safer, more affordable mortgages and take advantage of historically low interest rates. Under the plan, California households could save more than $3,000 a year, which could potentially have a positive impact on consumer spending.

The president’s plan also included a Federal Housing Finance Administration pilot program to transition Real Estate Owned (REO) properties into rental housing. While C.A.R. recognizes that this plan may be beneficial in markets where REO inventory is high, the Association opposes its implementation in California, given low inventory and high demand, even in the state’s hardest hit areas.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.