FHA Must Provide Housing Bailout to Break America Out of its Financial Funk

April 1, 2008 - PRLog -- Even when the foreclosures began to mount, mortgage companies could have renegotiated mortgages to adjust the rate once a year rather than twice a year. But, they were not going to cut into their profits to save America. Yet the Federal Government wants to provide cash to stabilize those companies creating the financial markets. What about the people who suffered because of those companies’ greed?  The Federal Government could have subsidized the Federal Housing Administration (FHA) so they  will loosen the rules of underwriting  to allow people to refinance into a fixed interest rate of 6 to 8%. But, they have not either.



The Federal Housing Administration (FHA) was created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to stabilize the mortgage market. The mortgage market needs some stabilization today, especially since the American economy is so dependent upon consumer spending. But, yet FHA has not taken a bold move to stabilize the economy neither has it loosened its underwriting standards. It, finally, applied for a government subsidy which the Federal Government has not approved yet. A Federal Government subsidy must come with strings of loosened underwriting requirements.



Truth be known, this mortgage crisis is an American problem that is growing worse by the day. People - poor, middle class and affluent - are walking away from their houses scared of the possibility of public eviction. People are in a financial funk.



Uplift, Inc. a 501(c)3 nonprofit has embarked on a financial awareness campaign entitled, Breakin' Out of Your Financial Funk!,  based on the book of the same title. The crux of this campaign is the “Give Yourself a Mental Break” seminars. The author Ida Byrd-Hill states “ I wrote Breakin' Out of Your Financial Funk!  to ease people out of their financial panic into a thinking, dreaming, planning, execution and spending mode, again.” People need someone to navigate and talk them through this crisis.



Byrd-Hill, a former financial advisor and  University of Michigan trained economist states,” Our economy is dependent upon people moving out of their financial panic into a vibrant happy spending mode. As people spend, manufacturers and retailers employ people and the cycle continues upward. If people do not spend, manufacturers and retailers layoff people and the economy spirals downward as it is currently. We must jump start this economy.” Breakin' Out of Your Financial Funk! can be purchased at www.upliftinc.org.

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About Uplift, Inc. Uplift, Inc. is a 501(c)3 nonprofit Idea Incubator committed to reconstructing communities  one idea at a time by eliminating poverty. This book is a part of its financial awareness campaign to change the thoughts of the community one individual at a time.

Website: www.upliftinc.org