Obama administration announces new mortgage aid programs

Rising foreclosures and underwater mortgages have forced many homeowners into moving out of their homes.

Some of those borrowers might be able to save their property, thanks to two new government programs that are in the works, according to Department of Housing and Urban Development Secretary Shaun Donovan. During an interview on CNN's "State of the Union," Donovan announced a new Federal Housing Administration refinancing initiative as well as an emergency loan program for unemployed borrowers.

On top of that, Donovan hinted that a revival of the federal homebuyer tax credit may be considered if housing doesn't improve soon. An underwhelming July home sales report was the primary driver behind the new federal assistance programs.

"The July numbers were worse than we expected, worse than the general market expected, and we are concerned," Donovan told CNN. "That's why we are taking additional steps to move forward."

Moving activity took a plunge last month, with the housing market experiencing a 12.4 percent decline in new home sales from the previous month, reported the Commerce Department. Home sales were also 32.4 percent lower than they were in July 2009.



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