brewer12345
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 6, 2003
- Messages
- 18,085
The government can use its power as the owner of mortgages and mortgage backed securities to facilitate loan modifications (such as, reduced principal or interest rate, lengthened time to pay back the mortgage) to help reduce the 2 million projected foreclosures in the next year
Ummm, considering that the gummint has been shrieking at the top of its lungs for over a year that this is exactly what private market lenders ought to be doing, it should come as no great surprise that they will do the same once they own the actual loans. Last I heard, this is known as a loan workout and has been done for both commercial and retail loans for decades or centuries.