Federal Reserve calls for more housing recovery efforts

A recent report from the Federal Reserve prompted officials to call for more efforts to be made by the federal government to spur a housing market recovery. The New York Federal Reserve President William Dudley demanded more mortgage refinancing programs and principal reductions be made available to struggling homeowners to help prevent further foreclosures and relieve the struggling housing market.

Dudley states the government needs to make refinancing programs available on streamlined terms and with moderate fees so homeowners can afford to take advantage of the low mortgage rates and keep their homes. Dudley also wants earned principal reduction for borrowers who are underwater but are able to make their mortgage payments.

In addition, the National Association of Home Builders agrees with officials in that excessively tight mortgage lending standards are holding back the housing market from making a recovery. In order to boost homeownership, the organization believes lending standards must be loosened so more struggling homeowners can refinance and avoid foreclosure, and new buyers can acquire a home loan they can afford.

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