Last week, the president announced his congressional economic stimulus plan to jump-start the economy. NY1's Lisa Yip filed the following report about how this plan affects business owners and residents in our area.

Stan Mankovsky of Stanley Capital Mortgage in Englewood Cliffs said it may be hard times for the economy as a whole, but his industry has taken the hardest hit so far.

Mankovsky believes mortgage lending is where the nation's economic decline began and where its recovery will begin.

"The mortgage industry is a stimulus for everything else in the country. If we can get the mortgage back on track, people will start buying homes people will start renovating, people will start buying new homes and new home sales drive other industries," said Mankovsky.

The mortgage industry received some good news last week. The Federal Reserve cut interest rates for the third time since last summer and the president announced a congressional plan to boost the economy.

The economic stimulus package would address the mortgage crisis directly, by increasing the limits on Federal Housing Administration loans and home mortgages that lenders like Fannie Mae and Freddie Mac can purchase.

"The combination of the rate cuts and influx of money into customers is gonna help put the whole thing into perspective,” said Mankovsky.

The plan also offers help for business owners and consumers. It includes $50 billion in business tax cuts and $116 million tax-paying families would receive a $600 to $1,200 rebate check, starting this spring.

"What happens when they have more money is, they are gonna spend it. Hopefully they will come to stores like ours,” said David Beyda, owner of Twist Inc. Clothing in Englewood.

Some residents say they support the plan, but are not sure how much it will help long term.
"In the short term it will help the economy. My question is: In the long term, will it really help? I worry that the mortgage problem is deeper than we all know," said Anne Ellenson of Tenafly.

"We haven't seen the worst of it. I think it's gonna come in the summer time. And after the summer time it's gonna slowly start coming upwards,” Mankovsky cautioned.

While Congress hopes the White House will sign off on stimulus package by February 15th, the Senate is expected to try to amend the House package. Lawmakers want to add funds for other economic initiatives.

— Lisa Yip