Important information from http://www.financialstability.gov/

Homeowner Affordability and Stability Plan
Executive Summary
The deep contraction in the economy and in the housing market has created devastating consequences for
homeowners and communities throughout the country.
. Millions of responsible families who make their monthly payments and fulfill their obligations
have seen their property values fall, and are now unable to refinance at lower mort2a2e rates.
· Millions of workers have lost their jobs or had their hours cut back, are now stru22lin2 to stay
current on their mort2a2e payments - with nearly 6 million households facing possible
foreclosure.
· Neighborhoods are struggling, as each foreclosed home reduces nearby property values by as
much as 9 percent.
The Homeowner Affordability and Stability Plan is part of the President's broad, comprehensive strategy to get the economy back on track. The plan will help up to 7 to 9 million families restructure or refinance their mortgages to avoidforeclosure. In doing so, the plan not only helps responsible homeowners on the verge of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.

The key components of the Homeowner Affordability and Stability Plan are:

1. Refinancing for Up to 4 to 5 Million Responsible Homeowners to Make
Their Mortgages More Affordable
2. A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million
At-Risk Homeowners
3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie
Mae and Freddie Mac
1. Affordabilitv: Provide Access to Low-Cost Refinancing From Falling Home Prices
2. Enabling Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are
currently at historically low levels, providing homeowners with the opportunity to reduce
their monthly payments by refinancing. But under current rules, most families who owe more
than 80 percent of the value of their homes have a difficult time refinancing. Yet millions of
responsible homeowners who put money down and made their mortgage payments on time
have - through no fault of their own - seen the value of their homes drop low enough to make
them unable to access these lower rates. As a result, the Obama Administration is announcing
a new program that will help as many as 4 to 5 million responsible homeowners who took out
conforming loans owned or guaranteed by Fannie Mae or Freddie Mac to refinance through
those two institutions.