A new federal program that lets the unemployed defer all or part of their mortgage payments for 12 months or more will provide a real safety net for families that need a temporary bridge to save their homes. But the program is too limited, applying only to loans backed by the Federal Housing Administration. Foreclosures today are more likely due to a homeowner's unemployment than having been trapped in a subprime loan. A large-scale program that grants the jobless a decent reprieve from mortgage payments is needed.
Turning around the housing market is still a major item on President Barack Obama's to-do list. The continued decline in housing prices coupled with record numbers of homeowners in trouble puts a serious drag on the economy, particularly in Florida. As much as the administration has tried to address the issue with a variety of programs — from direct mortgage assistance to rewarding banks and mortgage servicers for modifying loans — its initiatives, as the president acknowledged last week, have had little effect on stabilizing the housing market.
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