President Obama Offers Mortgage Relief Veterans, FHA Loan Holders

SAN FRANCISCO (KCBS) – President Barack Obama has announced plans for more mortgage assistance that could help millions of homeowners.

Homeowners whose mortgages are insured by the Federal Housing Administration will be able to refinance at reduced fees, saving about a thousand dollars each. President Obama is also taking steps to make whole veterans or active duty military, whose homes were foreclosed upon illegally.

KCBS' Doug Sovern Reports:

"If you are a member of the Armed Forces, whose home was wrongfully foreclosed, you will be substantially compensated for what the bank did to you and your family," said President Obama.

Holly Petraeus, the wife of General David Petraeus, now serves as the head of Servicemember Affairs at the new Consumer Financial Protection Bureau. She said that military personnel who were victims of illegal foreclosures will get their lost equity, plus about $116,000 in damages.

"I'm also concerned that we're going to have a cottage industry spring up, where people are going to start advertising that they can help you get onto the settlement if you pay them a sum of money," she said. "Just like we saw with some of the home loan modification assistance scams."

Petraeus said that she doesn't know yet how many Californians might benefit from the new program.

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