President Obama unveiled two housing initiatives on Tuesday aimed at helping members of the military and homeowners with loans backed by the government.
Lenders will be required to review the records of every service member or veteran whose home was foreclosed on since 2006 and provide compensation equal to a minimum of $116,785 plus any home equity lost since the foreclosure, according to the American Armed Forces Press Service.
Under the new FHA plan, refinance fees would be lowered, allowing more borrowers the opportunity to refinance their loans. For example, the Washington Post said a typical borrower who owes $175,000 could lower a $1,010 monthly payment to about $915.
The Washington Post pointed out that neither of Obama's proposals requires the approval of Congress.
