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PRESIDENT BUSH DELIVERS REMARKS ON MORTGAGES
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I'm pleased to announce that our efforts have yielded a promising new source of relief for American homeowners.
Representatives of Hope Now just briefed me on their plan to help homeowners who will not be able to make the higher payments on their subprime loan, once the interest rates go up, but who can at least afford the current starter rate.
Hope Now members have agreed on a set of industry-wide standards to provide relief to these borrowers in one of three ways: by refinancing the existing loan into a new private mortgage; by moving them into an FHA secure loan; or by freezing their current interest rate for five years.
Lenders are already refinancing and modifying mortgages on a case-by-case basis. With this systematic approach, Hope Now will be able to help large groups of homeowners all at once.
This will bring more relief to more homeowners more quickly.
Hope Now estimates there are up to 1.2 million American homeowners who could be eligible for this assistance.
BUSH: Public awareness is critical to this effort because the group can only help homeowners who ask for it.
So, Hope Now recently mailed hundreds of thousands of letters to borrowers falling behind on their payments, and they have set up a counseling hot line that Americans can call 24 hours a day.
I directed Secretaries Paulson and Jackson to expand the public awareness campaign. And I have a message for every homeowner worried about rising mortgage payments: The best you can do for your family is to call 1-800-995-HOPE (sic). That is 1-800-995-HOPE (sic).
Third, the federal government is taking several regulatory actions to make the mortgage industry more transparent, reliable and fair. Later this month, the Federal Reserve intends to announce stronger lending standards that will help protect borrowers.
Same time, HUD and the federal banking regulators are taking steps to improve disclosure requirements so that homeowners can be confident that they are receiving complete, accurate and understandable information about their mortgages.
As we take these steps, the Department of Justice will continue to pursue wrongdoing in the banking and housing industries so we can help ensure that those who defraud American consumers face justice.
