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PRESIDENT BUSH DELIVERS REMARKS ON MORTGAGES
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America's economy has proved itself highly resilient, and it is strong and it is flexible and it is dynamic enough to weather this storm.
For individual homeowners, the problem is more difficult. Many of those feeling financial stress have an adjustable rate mortgage, which typically starts with a lower interest rate and then resets to a higher rate after a few years.
Many of those borrowers cannot afford the higher payments and now some are fearing foreclosure, which is a terrible burden for hardworking families and a source of concern for communities and neighborhoods across our country.
The rise in foreclosures would have negative consequences for our economy. Lenders and investors would face enormous losses. So they have an interest in supporting mortgage counseling and working with homeowners to prevent foreclosure.
The government has a role to play as well. We should not bail out lenders, real estate speculators, or those who made the reckless decision to buy a home they knew they could never afford.
BUSH: Yet there are some responsible homeowners who could avoid foreclosure with some assistance. And in August, I announced a series of targeted actions to help them.
My administration has moved forward in three key areas.
First, we've launched a new initiative at the Federal Housing Administration called FHA Secure. This program gives the FHA greater flexibility to offset refinancing to homeowners -- to offer refinancing to homeowners who have good credit histories but cannot afford their current payments.
In just three months, the FHA has helped more than 35,000 people refinance. In the coming year, the FHA expects this program to help more than 300,000 families.
Second, in August, I asked Secretaries Paulson and Jackson to work with lenders and loan servicers and mortgage counselors and investors on an initiative to help struggling homeowners find a way to refinance.
They assembled a private sector group called Hope Now Alliance. The leaders are with us today.
Hope Now is an example of government bringing together members of the private sector to voluntarily address a national challenge, without taxpayer subsidies or without government mandates.
