Fed Pushes for Mortgage Relief and Loan Modifications
by admin ~ December 5th, 2008.The government maintains their desire for consumers to have the option to remain in their homes and weather this foreclosure crisis. For this to work, there needs to be mortgage relief and debt forgiveness from the mortgage lenders and investors that hold the mortgage-backed securities.
Fed Chief, Ben Bernanke said the government could still buy back delinquent mortgage loans in bulk and refinance them under the new FHA loan, Hope for Homeowners or a similar plan. He said that a foreclosure prevention plan like this could help more homeowners stay in their homes than if the government refinanced individual mortgage loans in a more selective process. The Fed chief said all of the home loan modification type proposals could be used in tandem and would likely require additional public funding. “Despite good-faith efforts by both the private and public sectors, the foreclosure rate remains too high, with adverse consequences for both those directly involved and for the broader economy,” Bernanke said. “More needs to be done.” Read the complete article > Fed Chief Says More Foreclosure Relief Needed with Loan Modifications
Category: Foreclosure news | Tags: debt forgiveness, mortgage relief