Obama administration to provide $3B in housing aid to 17 states; Mississippi to get $38 million.

The Obama administration is providing $3 billion to unemployed homeowners facing foreclosure in the nation's toughest job markets.

The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.

Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.

The administration was required to launch the programs by the financial regulatory bill signed by President Barack Obama last month. The money to pay for the efforts is coming from $50 billion set aside for homeowner assistance from the $700 billion Wall Street bailout.

California will get the largest share of money for the Treasury program, at $476 million. Florida is in line for nearly $239 million. Illinois will receive $166 million and Ohio will receive $149 million.

The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.

That program, known as Making Home Affordable, provides lenders with incentives to reduce mortgage payments. So far, it has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.

Also receiving money are Michigan, $129 million; Georgia, $127 million; North Carolina, $121 million; New Jersey, $112 million; Indiana, $83 million and Tennessee, $81 million.

Alabama is due to receive $61 million, South Carolina, $59 million; Kentucky, $56 million; Oregon, $49 million; Mississippi, $38 million; Nevada, $34 million; Rhode Island, $14 million; and Washington, D.C., $8 million.

AP

Harper Announces Post Office Naming Ceremony for Fallen Soldier

U.S. Representative Gregg Harper (R–Miss.) will host a dedication ceremony on August 13, 2010 to name the Hickory, Mississippi Post Office in honor of Sergeant Matthew L. Ingram, a Purple Heart recipient who died while serving in Afghanistan.

“Naming this facility will present a constant reminder of the sacrifices Sgt. Ingram and other Mississippians have made through their service to the United States,” said Congressman Gregg Harper. “Matthew’s love for his country and able leadership took him from Hickory, Mississippi to Afghanistan and his courage and ultimate sacrifice will not be forgotten.”

H.R. 4139, introduced by Harper, designates the United States Postal Service facility in Hickory as the “Sergeant Matthew L. Ingram Post Office” after the 25-year-old Newton County native. Ingram died on August 21, 2009 from wounds suffered when an improvised explosive device detonated near his vehicle during combat in Afghanistan. The blast occurred while his unit was under small arms fire from enemy forces according to the Department of Defense.

The public is invited to celebrate Ingram’s life and service to America.

WHO: U.S. Representative Gregg Harper (R–Miss.)

WHAT: Sgt. Matthew L. Ingram Post Office Naming Ceremony

WHEN: Friday, August 13
9:00 – 10:00 a.m.

WHERE: Hickory Post Office
7464 Highway 603
Hickory, Mississippi 39332

Freddie Mac narrows loss, but firm needs more government aid

Mortgage finance giant Freddie Mac said Monday that its loss in the second quarter narrowed but that taxpayers would still be on the hook for the foreseeable future.
Freddie's loss in the three-month period ended June 30 was $4.7 billion, compared with $6.8 billion in the first quarter.

As a result of the losses, Freddie will need $1.8 billion in government aid on top of more than $60 billion already provided by taxpayers.

Freddie's quarterly loss resulted from the company's decision to set aside more money to cover losses on home loans that are not being paid off. The Reston company is also losing money as it restructures mortgages for borrowers who can't afford the monthly payments, part of the Obama administration's efforts to reduce foreclosures.

"Freddie Mac continues to support the still-fragile housing market by providing America's families with access to affordable home financing and foreclosure alternatives," chief executive Charles E. Haldeman Jr. said in a statement. "We recognize that high unemployment and other factors still pose very real challenges for the housing market, and with that in mind, we continue to focus on the quality of the new business we are adding to our book to be responsible stewards of taxpayer funds as we support the nation's housing market."

The federal government stepped into Freddie and its larger rival, Fannie Mae, two years ago. Now, it is government decisions that are driving a good bit of the companies' losses.

Since then, they have been run by government overseers who have told the companies to help carry out the Obama administration's housing policy. They have focused on continuing to guarantee mortgages to keep interest rates low and on reworking unaffordable home loans so borrowers can avoid foreclosure. The federal government has pledged to keep the companies solvent.

The firms are also paying steep dividends to the government in return for the aid. The dividend rate, 10 percent, is far more than the companies would pay to raise money in the capital markets.

After the latest round of assistance, Freddie will be required to pay $6.4 billion in annual dividends to the government. "This dividend amount exceeds the company's annual historical earnings in most periods," Freddie said in a statement. "Freddie Mac expects to request additional draws under the Purchase Agreement in future periods."

Fannie is facing a similar challenge. The D.C.-based firm reported a $1.2 billion loss last week.

The dividends are forcing Fannie and Freddie to borrow money from the Treasury to repay taxpayers, creating a cycle of ever-increasing demands for government infusions of money and dividend payments.

The Obama administration and Congress are beginning to devise a new housing finance system to replace Fannie and Freddie. No decisions about the future of U.S. housing policy have been announced.

WP

Gluckstadt move to incorporate threatened by Canton action

In early June Canton Mayor William Truly said he had no objection to the proposed incorporation of Gluckstadt. However, a recent filing by the City of Canton to annex more land has some Gluckstadt residents worried.

In an email shared with the Flora Harvester, Gluckstadt incorporation proponent Bill Weisenberger states he expects an objection to be filed with the court over Canton's plan to annex an area that extends south on Old Canton Road's west side almost to Harvey Crossing Subdivision, and then west to a line on north side of Church Road. That area overlaps part of the proposed incorporated area of Gluckstadt.

The message to supporters is to begin pushing hard towards incorporation in order to fend off moves by the City of Canton, including a controversial rezoning on Sowell Road to allow apartments. That move has been opposed by many area residents and Madison County School officials. The Canton Board of Aldermen is scheduled to meet on August 17th , 6pm at City Hall to vote on the rezoning issue. Opponents hope to pack the meeting, but expect Canton city officials will approve the rezoning anyway. A legal appeal to the decision is expected. The application for rezoning can be viewed HERE.

The call is to move ahead quickly with gathering of signatures on petitions.

"If they get this zoning it will affect all we have been doing, property values, schools, transportation , public safety, everything," Weisengerger stated in the email. "They can then show a change in the character of the surrounding area and it will help them in their future annexation plans. We must stop it now."

Anyone who wants to volunteer to work neighborhoods to get the needed signatures for the incorporation petitions is encouraged to contact Bill Weisenberger at bweis1@bellsouth.net .

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