Protecting the Middle Class News

By the Numbers: 4

America's national parks make up an important part of our society. Besides preserving our history and protecting natural ecosystems, national parks are economic engines. Every $1 of federal investment in our national parks creates $4 of economic value to the public. These investments include projects to build, maintain, and repair facilities, replace outdated machinery and equipment with more energy efficient systems, and preserve natural and cultural resources. In fact, national parks generate $13.3 billion in local private-sector activity and support 267,000 private-sector jobs nationwide due to economic activity they generate.

Today, President Obama designated Fort Monroe in Hampton, Virginia, as our 396th national park. Fort Monroe, a historic fort in Virginia’s Tidewater region, played a pivotal role in the history of slavery in the United States. During the Civil War, the fort remained in Union possession and became a place for escaped slaves to find refuge. Fort Monroe closed its doors as a military base in September, but today’s proclamation ensures its legacy continues as a national monument.

Weekly Address: We Can’t Wait to Create Jobs

President Obama says that we can’t wait for Congress to take action to grow the economy and create jobs -- and highlights actions he took to help families refinance their mortgages, put veterans to work, and lower the cost of student loans.

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We Can't Wait to Help America's Graduates

President Barack Obama waves to the crowd after arriving at the University of Colorado Denver campus, in Denver, Colo., Oct. 26, 2011. The President delivered remarks on the steps the Administration is taking to increase college affordability by making it easier to manage student loan debt. (Official White House Photo by Pete Souza)

In this globally competitive, knowledge-based economy, higher education has never been more important. Simply put, America cannot lead in the 21st century without the best educated, most competitive workforce in the world. Nations that out-educate us today will out-compete us tomorrow, which is why some form of higher education is an absolute must.

We also know that college costs have never been higher -- or more difficult to manage. The Administration has already provided aid to millions of students with historic investments in programs like Pell Grants and the American Opportunity Tax Credit. But we realize that many borrowers are struggling to both pay off their loans and make ends meet every month. And fear of being saddled with debt in the long run may deter many potential students from enrolling in college. They need help now.

That’s why today, President Obama announced new efforts to make college more affordable by helping millions of borrowers better manage their federal student loan debt. We’re taking executive action with two measures that will bring relief to borrowers by lowering their monthly loan payments -- at no cost to taxpayers.

Supporting Law Enforcement Officers and First Responders Who Keep Our Nation Safe

Ed. note: This has been cross-posted from DHS.gov

Keeping our nation safe from evolving terrorist threats requires strong partnerships at all levels. Nowhere are those partnerships more important than with our federal, state, local, and tribal law enforcement officers who work on the frontlines every day to keep our cities and communities safe.

These courageous men and women, who put their lives on the line to protect others, must have the tools, training, and resources they need to do their jobs safely and effectively.

This week at the International Association of Chiefs of Police (IACP) General Assembly in Chicago, we each had an opportunity to reiterate our support for police officers and first responders across our country, many of whom are struggling to hire or retain personnel in the face of tough economic challenges.

As part of ongoing work to better understand and overcome current fiscal challenges, this week, the Justice Department's Community Oriented Policing Services (COPS) office released a new report on how the economic downturn has impacted police departments nationwide. According to the Department's research, we expect that, by the end of this year, nearly 12,000 police officers and sheriff's deputies will have been laid off. Already, law enforcement agencies nationwide currently have nearly 30,000 unfilled vacancies. And an estimated 28,000 more officers and deputies experienced week-long furloughs last year. In 25 years of collecting data, this is the first national decrease in law enforcement positions ever recorded.

There is great demand for existing federal fire fighter hiring funding. In FY10 alone there were $1.8 billion in applications for $420 million in SAFER funds.

We Can't Wait: Recent Executive Actions to Support the Housing Market and Help Struggling American Homeowners

Today, the President traveled to Las Vegas to highlight a set of steps announced by the FHFA to make it easier for some homeowners to refinance their mortgages.  This will help responsible borrowers with little or no equity in their homes take advantage of today’s low mortgage rates. 

Over the past several months, the Obama Administration has worked with federal housing agencies, industry stakeholders and state and local governments to push forward several important executive actions to help stabilize the housing market and help struggling borrowers:

Helping Responsible Homeowners Afford Mortgages

• Helping more responsible borrowers refinance their mortgages (10/24/11):Today, the Federal Housing Finance Agency (FHFA) announced a set of changes to help a greater number of creditworthy borrowers refinance – particularly those who are underwater on their mortgages. By eliminating the maximum cap on underwater borrowers participating in the program, as well as eliminating certain risk-based fees and encouraging competition by addressing the issue of representations and warranties, these changes should help more Americans save several hundred dollars each month by taking advantage of today’s historically low interest rates. 

Helping Prevent Foreclosures and Keep Families in Their Homes

• Providing 12 months of mortgage forbearance for unemployed borrowers (07/25/11): The Administration announced it was extending the minimum forbearance period that unemployed borrowers could receive on their mortgages to a full year, up from four months in FHA and three months in the Home Affordable Modification Program (HAMP). This change will help borrowers stay in their homes while they look for jobs, which is not only good for those families but for the housing market by reducing the number of homes that go into foreclosure. These changes went into effect on 10/1/11.
   
• Encouraging servicers to speed up the HAMP modification process (07/06/11):To help encourage servicers to move quickly to modify distressed borrowers’ loans, the Treasury adjusted the incentive structure of HAMP payments to servicers. Treasury reformed the system from a flat $1,000 fee to variable fee to encourage modifications earlier in a homeowner’s delinquency. The new incentive structure is $1,600 for modifications before 4 months of delinquency, $1,200 for 4-7 months, and $400 afterwards.
• Single point of contact for HAMP borrowers (05/18/11): In conjunction with Treasury, the Administration has provided significant resources for homeowners seeking assistance through HAMP.  On May 18, the Treasury Department provided guidance requiring the 20 largest servicers participating in HAMP to provide a single point of contact for homeowners.  As of September 1 for new applicants to the program, and November 1 for homeowners who have already begun the application process, servicers are required to implement a Single Point of Contact system of customer service for their non-GSE loans, so that a homeowner seeking a modification or foreclosure avoidance assistance has one single relationship manager.  The relationship manager works with the homeowner throughout the loss mitigation process until all options have been exhausted.
   
• Right to neutral third-party appeal of modification denials (02/01/11): In the event a homeowner is not eligible for a modification HAMP requires servicers to notify the homeowner of this decision in writing using commonly understandable language, and to give homeowners 30 days to dispute the decision before a foreclosure sale can take place.  If a homeowner has been denied due to a negative net present value (NPV) result, servicers must disclose all of the variables that went into the NPV calculation and homeowners can also work with staff at the Homeowner’s HOPE Hotline and the HAMP Solution Center to resolve any issues.  Treasury has also made available online an NPV Calculator to help homeowners better understand their eligibility.

Reducing Housing Inventory to Increase Home Values, Improve Economy

• Transitioning vacant property owned by the GSEs/FHA into rental housing (8/1/11 – ongoing): In August, the FHFA, in conjunction with the Obama Administration released a request for information on ways to help address the growing inventory of Real Estate Owned (REO) foreclosed proprieties on Fannie and Freddie’s books, including   transitioning properties to rental housing. Together, the GSEs and FHA own about half of the REO properties across the country. These REO properties are at the end of the foreclosure pipeline, usually vacant and often not well maintained. As such, they have a disproportionate downward impact on local and regional housing prices. Taking steps to transition some of this inventory over into rental properties or other productive uses will help stabilize neighborhoods and home values, and encourage greater private investment into the real estate sector at a crucial moment in our economy. 

Helping Hardest Hit States

• Implementing the Hardest Hit Fund (2/19/10 – on going):Treasury has allocated $ 7.6 billion to help homeowners avoid foreclosure in the areas hardest hit by steep home price declines and unemployment. All 18 states and the District of Columbia are now accepting applications for the Hardest Hit Fund foreclosure prevention programs.

Increasing Transparency and Accountability

• New compliance reporting for the largest HAMP servicers (06/09/11 - ongoing): Since inception of the Making Home Affordable Program (MHA),Treasury has conducted a comprehensive compliance program to ensure that homeowners are being fairly evaluated for the program and that servicer operations reflect the primary aim of both Treasury and the Administration:  assisting struggling homeowners who may be eligible for assistance and ensuring that homeowners are being treated appropriately.   This past June, Treasury enhanced its public reporting by publishing servicer assessments for each of the 10 largest servicers in the Making Home Affordable Program (MHA).  These assessments are designed to provide further information to the public about servicer performance and prompt servicers to correct identified deficiencies by holding them publically accountable.  In the second quarter of 2011, two servicers were found to be non-compliant and, therefore, their incentive payments have been withheld. 

We Can't Wait To Help Homeowners Refinance Their Mortgages

In a typical recession, this is how you expect a recovery to get its legs: Growing families begin to invest in new homes. That investment works its way through the economy. Builders, suppliers, realtors, and the broader community all benefit.

Today, that isn't happening.

In 2006, the median home price in the United States was $227,100. By May of this year, that price had fallen to $158,700.

Already, at least 5 million people have lost their homes due to foreclosure, and today, one in every three homes purchased is the product of a short sale or a foreclosed property.

Worse still, across the country, nearly 11 million owe more than their property is worth.

Millions of these people have done everything right. They've paid all their bills and kept current on their home loans. But right now, they're stuck with higher payments because their mortgages are underwater. They're not eligible to refinance because the decline in home prices have made their property worth less than what they owe. And that's a problem President Obama knows must be addressed.

All of these factors have contributed to a climate where new homes are being built at the lowest rate since World War II and where homeowners feel trapped by financial circumstances outside their control. Those two things together are holding back the recovery.

We can't wait to help homeowners. The situation is too serious, and too much good can come from improving the state of housing in this country.

So today, President Obama is taking action. It starts with finding ways to allow homeowners to refinance their mortgages.

The Home Affordable Refinance Program is designed to do just that. To date, it's already helped nearly 1 million homeowners improve their financial situations. But up until now, eligibility regulations and costs associated with the program have kept it from having a wider impact.

Now, a new set of rules will open the program to nearly anyone with a mortgage backed by Fannie Mae or Freddie Mac -- no matter what they owe -- so long as they are current on their payments, have no late payments in the last six months, and have not made more than one late payment in the past year.

The group that manages the program, the Federal Housing Finance Agency, will also waive a set of unnecessary costs and fees that were dissuading some from taking advantage of the program and work to get rid of certain restrictions in order to increase competition among lenders.

Millions of individuals could see up to $2,500 in savings every year.

But good as this program might prove to be, alone it won't be enough. The thing that pushes most homeowners into foreclosure is unemployment. Knowing that, Congress still has the opportunity to pass a housing program with sweeping potential -- the American Jobs Act.

Until they do, President Obama isn't waiting on lawmakers to take action. Today's announcement is just the start of things this Administration will do to get the economy growing again -- even if Congress refuses to make jobs a priority.

President Obama also can't wait for Congress to:

• Reduce prescription drug shortages
• Help businesses grow
• Lower monthly student loan payments
• Help America's graduates
• Put veterans back to work

President Obama Signs Historic Legislation Signaling Progress on Trade and Jobs

President Barack Obama signs the “United States-Korea Free Trade Agreement Implementation Act,” in the Oval Office, Oct. 21, 2011. (Official White House Photo by Pete Souza)

This morning, President Obama signed legislation implementing three job-supporting trade agreements with Korea, Colombia, and Panama. These trade agreements will help put Americans back to work and grow America’s economy.

At the same time, the President signed legislation renewing Trade Adjustment Assistance (TAA) that helps workers who have been hurt by increased global competition. He also signed legislation to renew trade preference programs that sustain the United States’ commitment to trade and economic development that lifts up some of the world’s poorest people.

With all the stories and speculation flying around the news these days, I know it’s hard to separate fact from fiction sometimes. So let me share three quick points that I hope will help you understand why this is good news for all American workers and families.

First, these agreements will increase U.S. exports and American jobs. The Korea agreement will support an estimated 70,000 U.S. jobs and increase U.S. GDP by at least $11 billion due to increased exports of goods alone. Chances are you’ll benefit from these agreements if you work for or with anyone who makes, grows, or provides goods and services to Korea, Colombia, or Panama. These agreements make it easier and more cost-effective to sell Made-in-the-USA products to consumers in each of these countries. In turn, increased exports of U.S. goods and services will support more and better jobs for farmers, ranchers, manufacturers, service providers, workers, and businesses all across the United States. And all three agreements have groundbreaking protections for labor rights, the environment, and intellectual property, so American workers and businesses will be able to compete on a level playing field.

Second, the President worked to improve these agreements when he came into office. All three faced significant opposition from Congress. But instead of surrendering to the status quo, the President told me to get to work. With Korea, he sent me back to the negotiating table to secure additional market access for U.S. automobile manufacturers. With Colombia, he stood firm on the principle that U.S. trade agreements must reflect American values, including respect for and protection of workers’ rights. And with Panama, he made sure that we addressed key concerns related to tax transparency and labor conditions. In each case, the President held out for a better, more balanced deal.

That brings me to the third and final point: President Obama also signed today legislation that strengthens and streamlines TAA, and renews key preference programs –- the Generalized System of Preferences (GSP) and the Andean Trade Preference Act (ATPA). Both TAA and our preference programs are key elements of President Obama’s balanced approach to trade. TAA helps those workers whose jobs are displaced by trade by providing job re-training programs, lower health insurance premiums, and assistance that keeps families on their feet. And GSP and ATPA uphold our commitment to support trade and economic growth that lifts up some of the world’s poorest people while helping American businesses get inputs they need and American consumers.

It’s important to note that Congress approved these trade measures with significant support in record time. In fact, the Korea agreement received more recorded votes than any free trade agreement in history. I think that’s a good indication that the President’s principled and pragmatic leadership has created a more balanced trade policy –- one that holds the promise of open markets and a level playing field with increased U.S. exports and better American jobs for many years to come. And since President Obama has prioritized enforcement of America’s trade agreements since day one, Americans can also be assured that we’ll hold our trading partners accountable for their obligations moving forward.

President Obama’s historic action today is a big step forward on trade and jobs. We look forward to working with Congress and the American people to continue pursuing a balanced trade policy that keeps American producers competitive abroad and supports jobs for more hard-working Americans here at home.
 

Virginia Computer Teacher Supports Science and Engineering Education

President Barack Obama signs "Skrappy" the robot during a tour of the computer lab and robotics workshop at Bluestone High School in Skipwith, Va., Oct. 18, 2011. The Bluestone Robotics team was founded in 2004 and built their first robot with a basic kit of parts and scraps from area businesses. (Official White House Photo by Pete Souza)

Tracy Ellis teaches robotics and computer classes at Bluestone High School in Mecklenburg County, Virginia, one of the stops on President Obama's American Jobs Act Bus Tour this week. Ellis supports President Obama’s jobs plan because the investments in school infrastructure and modernization will help his students access the tools they need to train for 21st century jobs.

Ellis said that computers play an important role in our society. Everyone has one, but no one is willing to open them up and fix them if something goes wrong, he said. He teaches his students to repair computers and address many of the problems computer users encounter, which he says is a valuable skill that gives them practical experience for future careers. His more advanced classes are even responsible for providing technical support for the school’s computers.

Ellis also teaches an afterschool robotics program that attracts 25 to 30 students each school year. He said the robotics program is a great way to get students involved in science and engineering who might not otherwise be interested, especially female students. Six other teachers as well as engineers from the community help students build a robot each spring, which they enter in competitions with other schools. President Obama met the team’s robot, Skrappy, when he visited Bluestone yesterday.

First Responders Say the American Jobs Act Will "Allow Us to Respond Safely and More Effectively"

Vice President Biden was in Flint, Michigan to talk with fire fighters and police officers about the American Jobs Act.

Right now, local communities across the country are laying off first responders as policymakers struggle with budget cuts in the tough economy. It’s putting public safety at risk. 

In Michigan, the Vice President said, "The President and I believe that the single-most basic obligation a government has -- it exceeds -- the single-most basic obligation is to keep its citizens safe.  It’s literally -- everything flows from that.  All our civil rights flow from being able to be safe in our streets, in our homes, our schools, our businesses.  Everything flows from it.”

That's why the American Jobs Act calls for $5 billion for local governments to keep police and fire fighters on the job. 

Watch the Vice President and listen to these first responders tell their stories about why these funds are so necessary.