Last Friday, we spent about 20 minutes with Jeff Horwich, host of MPR’s “In the Loop,” discussing the current state of affairs in the mortgage industry, how the latest loan modification initiatives may impact the market, and what it takes to get a mortgage these days. Here’s the segment. Our appearance is at minute 16. (more…)
Deborah Solomon, writing over at the WSJ blog Real Time Economics, teases out an interesting angle on just why Treasury is reluctant to use Federal rescue funds to support a loan modification/foreclosure prevention plan in the manner being advanced by Sheila Bair at FDIC and congressional Democrats, where the government covers 50% of losses on modified loans that re-default: Mr. Paulson and others have qualms with it, in part because they believe it provides an incentive for banks to foreclose and may convince some borrowers to stop making payments in order to qualify for government aid. Withi (more…)
Is Hope for Homeowners really a ray of hope or just another loan program that doesn't make sense for anyone?
On Tuesday, the Bush Administration laid out a plan to rescue struggling homeowners and put an end to the crippling housing market. The plan is based around the mortgages held by now government-run Fannie Mae and Freddie Mac. The details of the plan are as follows…