Tuesday, September 23rd, 2014

A sign of the times: the mortgage rescue plan

Obama is hoping his $75 billion plan will mean fewer foreclosures.
Obama is hoping his $75 billion plan will mean fewer foreclosures.

What a difference a year makes.

In 2008, presidential candidate Barack Obama talked about a plan to help homeowners with subprime mortgages refinance loans or sell their homes. About $10 billion should suffice, he said at the time.

The months went by, the economy worsened, and Obama won the election. On Feb. 18, 2009, President Obama unveiled his plan . Price tag: $75 billion.

The plan allows some homeowners to refinance loans by providing incentives to both lenders and borrowers. It excludes investors, speculators, people who fraudulently obtained loans, and people who purchased homes so beyond their means that even refinancing won't help them.

We examined the plan in detail and found Obama exceeded the terms of his campaign promise. We rated it a Promise Kept.