White House Wants Mortgage Firms To Help Homeowners Avoid Foreclosure

An Obama administration plan calls for the 14 largest mortgage companies to contribute to a federal fund that would help distressed homeowners avoid foreclosures.

The Huffington Post reports the proposal, backed by state attorneys general who are conducting probes of the companies, would also create another account that would pool fines and penalties paid by mortgage companies, letting states decide how to use the money. A third account in the proposal would aid homeowners who are victims of improper house seizures or foreclosures.

Rather than face fines for indiscretions found in the probes, the government would set target amounts for banks to contribute to the accounts that would help struggling homeowners.

What, if anything, do you think the government can do to stop foreclosures and stabilize the housing market?

Obama Administration Pushing For Homeowner Fund While State Officials Try To Levy Fines In Ongoing Mortgage Probes [Huffington Post]