If Obama's program is put into action, many feared losses won't materialize.
Along with giving American homeowners a break, President Barack Obama's new plan to get mortgage foreclosures under control should be a boon to the troubled companies that insure home loans.
The $75.0 billion Treasury-led initiative, if it works, will pull millions of Americans into affordable mortgages, reducing the number of at-risk loans that mortgage insurers had already planned to pay claims on.
Much of the foreclosure mitigation, up to 5.0 million loans, will be done through refinancing debts owned or guaranteed by government-controlled Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) who already shoulder $5.6 trillion in U.S. mortgages, roughly half the market.
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Monday, February 23, 2009
Housing Plan Bails Out Mortgage Insurers
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