President Barack Obama told an audience in Nevada on Monday that he will be regularly announcing “executive actions” his administration will take to “heal the economy” without the “dysfunctional” Congress.
“I’m here to say to all of you and to say to the people of Nevada and the people of Las Vegas, we can’t wait for an increasingly dysfunctional Congress to do its job. Where they won’t act, I will,” Obama said.
“I’ve told my administration to keep looking every single day for actions we can take without Congress, steps that can save consumers money, make government more efficient and responsive, and help heal the economy. And we’re going to be announcing these executive actions on a regular basis,” the president said.
Obama then explained the home mortgage refinancing plan that his administration announced on Monday.
“The barrier will be lifted that prohibits responsible homeowners from refinancing if their home values have fallen so low that what they owe on their mortgage is 25 percent higher than the current value of their home,” he said. “And this is critically important for a place like Las Vegas, where home values have fallen by more than 50 percent over the past five years.”
“If you’ve got a $250,000 mortgage at six percent interest rates, but the value of your home has fallen below $200,000, right now you can’t refinance,” Obama explained. “You’re ineligible. But that’s going to change. If you meet certain requirements, you will have the chance to refinance at lower rates, which could save you hundreds of dollars a month, and thousands of dollars a year on mortgage payments.”
Virginia Democratic Rep. Jim Moran told TheDC last Thursday that he would like to see the Obama administration refinance every home mortgage to three and a half to four percent without congressional approval. (RELATED: Obama admin. to offer home re-fi plan regardless ‘of how deeply underwater they are’)
“The banks aren’t doing it, but the federal government can borrow money at three-and-a-half percent today,” Moran said. “It would reset the economy, and I think it’s the one thing that would most quickly get this economy back on its feet.”
Moran’s recommendation foreshadowed the president’s statements on Monday.
“Where we don’t have to wait for Congress, we’re just going to go ahead and act on our own, and we’re going to keep on putting pressure on Congress to do the right thing for families all across the country,” Obama said.
“And I am confident that the American people want to see action,” he said. “We know what to do. Question is whether we’re going to have the political will to do it.”