Federal Reserve Bank of Cleveland Proposal for Breaking the Housing Crisis Cycle: Unless we attack the housing crisis cycle at multiple points, theres a chance our efforts will fall short.
If we only focus on delinquencies and foreclosures, and fail to address the problem of what to do with the excess of homes on the market, we wont break the cycle.
The focus should be on a set of coordinated, long-term policies that target multiple points in the housing crisis cycle.
Loan modifications. We believe in compensating mortgage servicers who modify loans to keep people in their homes. We also think we should look at temporarily shielding lenders from investor lawsuits that might be filed as a result of their loan modification efforts.
If we only focus on delinquencies and foreclosures, and fail to address the problem of what to do with the excess of homes on the market, we wont break the cycle.
The focus should be on a set of coordinated, long-term policies that target multiple points in the housing crisis cycle.
Loan modifications. We believe in compensating mortgage servicers who modify loans to keep people in their homes. We also think we should look at temporarily shielding lenders from investor lawsuits that might be filed as a result of their loan modification efforts.
watch the video in here :
