October 19, 2009
WHEDA Executive Director Issues Statement on Obama Administration Plan to Assist Housing Finance Agencies, Help Restart Affordable Housing Market
We are encouraged by the news of a Treasury Announcement. WHEDA’s staff will be spending the next several days studying the details to determine how the Treasury plan will benefit Wisconsin.
WHEDA's contribution to the housing market has been significant. Prior to last year when we suspended lending, WHEDA was lending as much as $10 million a week to first time homebuyers - homebuyers who were well-prepared, well-educated and who were getting a low interest, fixed rate. In working with WHEDA, many homeowners had access to thousands of dollars of down payment grants and loans. Finally, mortgages from Housing Finance Agencies perform very well. We're proud at WHEDA of a foreclosure rate that's less than one percent.
WHEDA is looking to the Treasury plan to assist our agency in issuing new bonds so that we may offer mortgage loans to low- and moderate-income Wisconsin residents at attractive rates – particularly at a time when we are seeing the highest level of affordability in two decades.
While challenges remain, including increased foreclosures in the state, this will free up tax-exempt bonding financing that has been frozen for too long and help us better serve the people of Wisconsin.
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