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The following is an editorial on some news I heard today Reuters and read on Associated Press. I then put together this article. Do you need a breaking news article or other content written? I can help you. All I need is a list of keywords you want to have in the content and a synopsis of what you want the page to be about. Contact me today.


FDIC Aggressively Presses Government to Help Borrowers Facing Foreclosure

Home prices fell in a record four out of five U.S. cities in the third quarter as low-cost foreclosures flooded the market. Around 40% of the real estate transactions that took place in the quarter were sales of foreclosures and other distressed properties. This brings down the median price by 9 percent from a year ago to $200,500.

Strict lending standards, falling home values, rising unemployment and the economic downturn are continuing to contribute to the already burgeoning supply of foreclosed homes on the market. By the end of the year, foreclosure listing service RealtyTrac Inc. expects more than a million bank-owned properties to have piled up on the market, representing around a third of all properties for sale in the U.S.

Freddie Mac said last week that rising unemployment rates, tightening credit and deteriorating economic conditions "contributed to a substantial increase in the number of delinquent loans," including loans made to borrowers with strong credit. Freddie Mac has 28,000 foreclosed properties on its books, while its sister company, Fannie Mae owns 67,500.

The ongoing deterioration of the economy and housing market are why the head of the Federal Deposit Insurance Corporation (FDIC) continues to press for more aggressive government action to help millions of home borrowers prevent foreclosure. FDIC Chairman Sheila Bair said in prepared testimony for a House hearing that as mortgage foreclosures mount, the government is "clearly falling behind the curve."

The FDIC broke with the Bush administration last week and proposed using $24 billion in government funds to help 1.5 million struggling borrowers by guaranteeing modified mortgages through the end of 2009.

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said "it is essential" to use some of the funds in the government's $700 billion financial rescue program to stem the tide of foreclosures.

Under the FDIC's new plan, the government would guarantee 2.2 million modified mortgages - mainly high-risk loans made to borrowers with weak credit or small down payments - through the end of next year. The agency says the government's backing would make the lending industry more willing to modify home loans because taxpayers would absorb half the losses if the borrower defaults a second time. And, loan servicing companies, which collect and distribute mortgage payments, would be paid $1,000 for each loan they modify.

Even if a third of borrowers default again on their modified loans, 1.5 million homes would still be saved, the FDIC says.

Maria Ny is a published author. She writes articles and website content on a variety of subjects including various types of mortgages, information on various law practice areas, FICO credit scores, search engine optimization and internet marketing, animals and instructional content. Visit www.marianydesigns.com to read more informative articles and to find out how she can help you with your web content needs.