U.S. spending cuts scheduled to kick in tomorrow will constrain the availability of Federal Housing Administration mortgages that account for about a quarter of originations, threatening its role in the year-long housing recovery.
Housing and Urban Development Secretary Shaun Donovan said in an interview for Bloomberg Television’s “Political Capital with Al Hunt ,” airing this weekend, that it’s too early to “declare victory” even as the housing market shows progress two years after the credit crunch drove down home prices.
The U.S. will lock down prisoners, furlough Internal Revenue Service workers, and rely on Russia to get astronauts into space to cope with $85 billion in federal spending reductions due to begin tomorrow.
The five largest U.S. mortgage servicers say they have given about $10.6 billion in relief to borrowers under terms of a $25 billion settlement over abusive foreclosure practices, according to a court-appointed monitor.
Congressional Republicans criticized what they termed a lack of detail in the Treasury Department’s plan to overhaul mortgage finance while saying they would use the report as a starting point for debate over legislation.
Shaun Donovan, secretary of the Department of Housing and Urban Development since the beginning of President Barack Obama’s first term, is planning to stay in his job through the second term, an agency spokesman said.