DreamTeam-Jo Cel Perez & Hector Gamez

This morning the FED announced its target for the federal funds rate is in the 0 percent to 0.25 percent range.

“Information suggests that economic activity has picked up following its severe downturn,” the Fed said in a prepared statement.

“Conditions in financial markets have improved further, and activity in the housing sector has increased. Household spending seems to be stabilizing, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.”

 The Fed will purchase $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt. This will provide help to mortgage lending and housing markets, and slow the pace of these purchases to allow for a smoother transition.

This past Tuesday The Treasury Department stated only 9 percent of eligible home owners received assistance from the Government on mortgage loan modifications and foreclosure prevention. 
Two of the biggest bank giants not willing to help borrowers were Bank of America and Wells Fargo, which received federal bailout money. Bank of American modified 4 percent of eligible loans, while Wells Fargo only modified 6 percent.
Out of the larger banks that did assist with modifications were JPMorgan Chase & Co., which modified 20 percent, and Citigroup Inc. which modified 15 percent of eligible loans.