The White House is willing to spend more than the $50 billion already pledged to stem home foreclosures and intends to focus its efforts on reducing monthly mortgage payments, rather than principal, said Lawrence Summers, the president’s top economic adviser.
“We’re prepared to do what is necessary,” Summers said in an interview on Bloomberg Television’s “Political Capital with Al Hunt” yesterday. “Going directly at the problem means addressing affordability by addressing payments.”
...In yesterday’s interview, Summers stressed the importance of lowering monthly payments, saying that “will have a quite substantial” impact on foreclosure rates.
Obama will release his housing plan in Phoenix, Arizona on Feb. 18, the same day a Commerce Department report is forecast to show a further decline in U.S. housing starts.