Obama: HUD pick central part of economic blueprint

[babylonsister]

Obama: HUD pick central part of economic blueprint

By PHILIP ELLIOTT and JIM KUHNHENN

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If confirmed by the Senate, Donovan would become the nation's top housing official in the midst of the worst recession in decades. Falling home values and stricter lending standards have ensnared millions of U.S. households. More than 259,000 homes received a foreclosure-related notice in November, up 28 percent from a year earlier.

Conrad Egan, president of the nonpartisan National Housing Conference, said Obama's selection of Donovan signals that he recognizes HUD can play a big role in the economic recovery.

"It really needs to be a seat at the Cabinet table that is the principal point where housing and community development issues are brought together and resolved successfully," Egan said. "HUD has been perceived as a second-tier participant in meeting that challenge."

Obama's housing plans, as spelled out during his campaign and the current transition, include:

-Enacting a 90-day foreclosure moratorium for homeowners "who are acting in good faith."

-Getting Treasury and HUD to coordinate with state housing agencies to restructure mortgages.

-Reforming the bankruptcy code to help homeowners.

-Enacting a 10 percent refundable tax credit on mortgage interest.

"This plan will only work with a comprehensive, coordinated federal effort to make it a reality," Obama said. "We need every part of our government working together from the Treasury Department to the Federal Deposit Insurance Corporation, the agency that protects the money you've put in the bank."

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