Obama to expand mortgage refinancing program

US President Barack Obama has announced new executive action to make it easier for struggling homeowners to refinance their mortgages.

Obama said in a speech in Nevada on Monday that the measure will help many more homeowners refinance at lower rates, and help consumers save money.

The new program covers housing loans extended or backed by government-sponsored mortgage giants Fannie Mae and Freddie Mac.

Rules would be eased for people whose homes are worth less than their outstanding mortgages and who want to switch to cheaper loans. Refinancing procedures would also be simplified.

The refinancing program does not require Congressional approval.

President Obama apparently took the step to underscore his determination to support the faltering US economy.

Obama had announced a package of measures to stimulate the economy and create jobs, including tax cuts and public spending early last month.

But the bills face opposition from Republicans and have no prospect of passing Congress anytime soon.

Tuesday, October 25, 2011 09:55 +0900 (JST)