The restructuring of loans will keep prices high... Fannie Mae and Freddie Mac..

NEW -> Contingent Buyer Assistance Program
"Many of those borrowers "could avoid foreclosure if they were offered (loans) that allow for affordable mortgage payments," Bair testified. "Restructuring their loans into more affordable products, especially 30-year fixed-rate mortgages, would bring them back to good standing, allow them to repair their credit histories and dampen the impact that foreclosures may have on the broader housing market.""

It doesn't sound like she knows what she's talking about. For most of those borrowers, a 30 year fixed loan would be less affordable because those borrowers can't afford the monthly payment on a 30 year fixed. If they could, they likely would have taken a 30 year fixed in the first place.
 
"Restructuring their loans into more affordable products, especially 30-year fixed-rate mortgages, would bring them back to good standing, allow them to repair their credit histories and dampen the impact that foreclosures may have on the broader housing market."

[snip]

Richard Syron, Freddie Mac's chairman and chief executive, said the company is "working on a major effort to develop more consumer-friendly subprime products that will provide stable financing alternatives going forward," which are expected to be available by midsummer.

He said the new products will include 30-year and possibly 40-year fixed-rate mortgages as well as adjustable-rate mortgages with longer fixed-rate periods.

I can see how these programs might help someone who could genuinely afford their home if it only were financed with a real (ie. not a screwball) mortgage. I can't see the programs helping much around here.

I'm not 100% opposed to a "bailout" that involves making rational mortgages available to people who can come within a stone's throw of "conforming." SoCal, on the other hand, is in another universe.
 
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