Economist's Mortagage Solution <lol>

[Riick]

The author is president of the National Bureau of Economic Research
and an economics professor at Harvard University.
woohoo woohoo
_____________________________________________________

"I believe the federal government should create a firewall to prevent too great a fall in housing prices."

SUMMARY:
The federal government to offer all homeowners with mortgages the
opportunity to replace 20% of existing mortgage with a federal loan at a
substantially lower interest rate. This would be a full-recourse loan that
would have to be repaid regardless of what happens, and to take priority
over all non-mortgage debt.

(( Unless of course the borrower or some connected lender could prove 'need" that is -- Ayn Rand are you tuning over in your grave yet? ))

LINK

 

[moh malekpour]

The author is president of the National Bureau of Economic Research
and an economics professor at Harvard University.
woohoo woohoo
_____________________________________________________

"I believe the federal government should create a firewall to prevent too great a fall in housing prices."

SUMMARY:
The federal government to offer all homeowners with mortgages the
opportunity to replace 20% of existing mortgage with a federal loan at a
substantially lower interest rate. This would be a full-recourse loan that
would have to be repaid regardless of what happens, and to take priority
over all non-mortgage debt.

(( Unless of course the borrower or some connected lender could prove 'need" that is -- Ayn Rand are you tuning over in your grave yet? ))

LINK

When they are at it, why they want to replace only 15 percent of the loan with FHA and maket the FHA loan subordinate? Why they just replace the whole mortgage with FHA and get over with it?

 

[Bama Bayou]

I wonder which lender paid for this "economist" (sounds more like a socialist to me) to come to this conclusion.

I have no problem with prices falling. I guess I'm old fashioned, but I thought a house was a place to make a home, not an ATM.

 

[Dennis J. Black ASA IFAS]

Damn pesky FREE MARKET.

 

[JonGalt]

This guy is probably for the Nationalization of Oil companies like those off the wall congresscritters (D) that proposed just that earlier this week.

 

[Mike Boyd]

When they are at it, why they want to replace only 15 percent of the loan with FHA and maket the FHA loan subordinate? Why they just replace the whole mortgage with FHA and get over with it?

Because being half a$$ed in the Fed's way of doing things.

 

[EquianAvante]

What is so funny? It is exactly like a fed/banking buyout except cutting out the middleman, the bank. Sounds much better for us common folk.

 

[Couch Potato]

When they are at it, why they want to replace only 15 percent of the loan with FHA and maket the FHA loan subordinate? Why they just replace the whole mortgage with FHA and get over with it?

I do believe that is the plan currently before the Senate, is it not?

 

[Metamorphic]

My first guess at the untended consequence would be that when a person defaults they immediately join the underground economy so the IRS cant garnish their wages to pay back the loan. As a result tax revenue drops and the remaining tax payers have an even bigger bill to settle than if the government had done nothing at all.