Obama Proposes New Plan to Save Homeowners More Money
Last night, during Obama’s State of the Union address, Obama proposed a plan to collect fees from large banks, in order to help fund more refinancings for underwater mortgagers. While the details were few, this could still have a potential impact on the financial services industry.
Obama mentioned that the new plan, hoping to save homeowners an average of $3000 a year, could be paid for through fees paid by banks. This alone is a strong indicator that the administration is still considering what essentially amounts to a tax to recover funds from the large financial institutions that received aid during the bail out.
In addition, Obama also proposed the expansion of the Department of Justice investigations into the misdeeds that led to the mortgage crisis and adding new crackdowns on financial fraud.
We’ll continue to update you as these proposals make new progress.