Taxpayer bailout extends to housing speculators

New York /
Mar.March 05, 2012 10:00 AM

First it was the banks, then it was the mortgage giants, and now it is real estate speculators who invested in multiple properties before the crash who are set to receive a taxpayer bailout.

Bloomberg News reported that in the Obama administration’s effort to prevent large swaths of foreclosures from destabilizing neighborhoods, it is expanding the Home Affordable Modification Program to landlords for up to four properties. The program, first introduced in 2009, pays banks to cut interest rates, elongate mortgage terms and, in some cases, forgive some principal debt.  However, HAMP has yet to provide aid to as many borrowers as hoped.

“When we started the program we focused on owner-occupied houses because the need was so great and we wanted to target the efforts to that group,” said Tony Massad, the Treasury Department’s assistant secretary for financial stability. “Given where we are today, more and more people recognize that vacant properties are a problem no matter how they became vacant.”

Approximately 700,000 landlords could be eligible for mortgage help under the program, Bloomberg News said. Though many of those landlords are home flippers, and the Federal Reserve has said helping such borrowers is not a priority, it believes less restrictve programs present a more efficient remedy for the housing crisis. [Bloomberg]


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)
Nonprofit plans affordable housing development near Essex Crossing
Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
Mayor Bill de Blasio (Getty)
City expands free legal services for tenants, fearing eviction rush
City expands free legal services for tenants, fearing eviction rush
(iStock)
Landlords seek up to 5% rent hike on stabilized apartments
Landlords seek up to 5% rent hike on stabilized apartments
Andrew Yang (Getty)
Does Andrew Yang’s housing plan make sense?
Does Andrew Yang’s housing plan make sense?
The Altana Complex and Waterford CEO John Drachman (Waterford)
Waterford Property venture acquires luxury rental complex from Carmel Partners
Waterford Property venture acquires luxury rental complex from Carmel Partners
Inside the quest to change single-family zoning
Inside the quest to change single-family zoning
Inside the quest to change single-family zoning
Dianne Morales and Phipps Houses in Kips Bay (Dianne Morales, Google Maps)
Mayoral candidate runs away from ex-employer Phipps Houses
Mayoral candidate runs away from ex-employer Phipps Houses
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...