Stabilizing The Housing Market – How America Did It

The mortgage loan and housing crisis created tremendous economic anxiety and directed the American economy towards a black hole of financial hardship.

Though the US economy is not out of the recession or perhaps depression, things have appeared to settle down a bit.

It looks as if the housing market may be stabilizing. This sis a article exploring the steps and actions that were taken to stabilize the US housing market.

Key Actions of Housing Recovery

  • The FHA's Efforts and Powerful Initiative

    • Their efforts to spend capital on mortgage assets and securities when private capital was no where to be found.

    • Political backing of their efforts to reform the financial markets and particularly the practices and operations involving debt and risk management.

  • Obama’s Making Home Affordable Plan

    • HAMP Modifications have helped 1.2 million homeowners obtain a loan modification
    • HARP Refinance
    • Lender Incentives
    • Freddie Mae as acting agent for the MHA-C or the compliance assurance operations
    • The Plans overall flexibility and agility to structure and restructure programs as they are needed.
    • The Hardest Hit Fund – Foreclosure Relief

  • The Nearly 25 Billion Dollars Given to US Housing Agencies
    • US Housing Agencies were able to keep lending while other private lenders were saddle bagging cash out of fear and financial panic.

  • 1.4 Trillion dollars of Purchases by the FED and Treasury to Keep Credit Markets from Choking
    • Thank God. We would be Russian otherwise.

  • Financial Support for Fannie and Freddie

All of these actions taken by our collective American government has really helped stabilize the US housing market.

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