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Housing secretary touts Obama mortgage plan

4:49 PM, Oct 25, 2011   |    comments
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ATLANTA -- The city of Atlanta played host to US Secrtary of Housing, Shaun Donovan, who came to Atlanta on Tuesday to tour a new housing development, The Retreat at Edgewood.

The complex was built using a grant from the federal Neighborhood Stabalization Program, and soon it will be home to as many as 100 families with units for sale and for rent.

Donovan used his visit to promote a new initiative announced on Monday by the Obama Administration to help more homeowners refinance.

It's geared toward those who have mortgages with Fannie Mae or Freddie Mac who have not missed a payment for the past six months or more than 1 payment in the past year, but still owe more than their home is worth.

"Twenty-five dollars a year is the average we'll see," Donovan said. "That's like a large tax cut -- every year they pay their mortgage, they'll have that savings of $2,500 or more."

The new refinancing plan has been criticized by some as too little too late. But the Secretary insists it will help the struggling housing market.

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