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Sunday, July 10, 2011
Sunday, July 3, 2011
Solve the economic crisis?
News from the land of American't: Many of us think the wrong people got rewarded in the big bank fix. The idea to lower borrower's mortgage amounts to the value of the house has been floating around since the beginning of the debacle. John McCain endorsed the idea (without much fanfare) in the last presidential election. The idea was floated by two former White House economists (sorry, don't remember who) on the conservative and liberal side of the debate in a joint Wall Street Journal article in 2009. It is too late in the public opinion cycle to ram this kind of expensive program through.
Bank of America is evidently rewarding exemplary borrowers with pay downs on their mortgage so that the mortgage is close to the actual value of the house. From the point of view of the bank, why not reward the borrowers who can actually afford to repay their loans? Of course, Bank of America just agreed to pay $5Billion for their sins and the sins of Countrywide mortgage loans (who Bank of America "rescued") that they did sin by giving out those loans.
The HAMP (Home Affordable Refinance Program) program and others are there to help people in trouble, but the loan amount is not lowered to the valuation in the housing assistance programs. No indeed, in the HAMP program you still owe the original amount of the loan.
If the government, treasury, politicians, and banks had agreed to write down mortgages instead of rescuing the banks or in conjunction with the rescue, we would not be dwelling in the land of American't.
Bank of America Writing Down Mortgage Loans
Bank of America is evidently rewarding exemplary borrowers with pay downs on their mortgage so that the mortgage is close to the actual value of the house. From the point of view of the bank, why not reward the borrowers who can actually afford to repay their loans? Of course, Bank of America just agreed to pay $5Billion for their sins and the sins of Countrywide mortgage loans (who Bank of America "rescued") that they did sin by giving out those loans.
The HAMP (Home Affordable Refinance Program) program and others are there to help people in trouble, but the loan amount is not lowered to the valuation in the housing assistance programs. No indeed, in the HAMP program you still owe the original amount of the loan.
If the government, treasury, politicians, and banks had agreed to write down mortgages instead of rescuing the banks or in conjunction with the rescue, we would not be dwelling in the land of American't.
Bank of America Writing Down Mortgage Loans
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