mortgage crisis

Sen. Dick Durbin (D-Ill.) took to the Senate floor on Thursday and talked about the implications of Congress’ cave to the banks on his mortgage “cramdown” proposal, which would have allowed bankruptcy judges to reduce loan amounts and keep borrowers out of foreclosure and in their homes. Durbin eloquently summed up the way Congress has [...]

With the Senate not exactly in a rush to pass a mortgage cramdown bill, the Association of Community Organizers for Reform Now (ACORN) is out with a report that cites a highly successful foreclosure prevention program that could be replicated elsewhere, with enough government support.
Since banks apparently call the shots in Capitol Hill, it’s refreshing [...]

Here’s another interesting tidbit from The Wall Street Journal: The Obama Administration is expected to unveil new incentives today to encourage servicers to modify loans — particularly second mortgages. The failure to address the problem of second mortgages in the initial housing rescue plan launched in March was a glaring weakness, and the new monetary [...]

The New York Times gives high-profile treatment today to efforts in Flint, Mich. to deal with a deluge of abandoned and vacant properties by literally shrinking the city — demolishing the houses, urging people to leave, cordoning off the decay and leaving it to nature. The Times focuses on Genesee County Treasurer and Land Bank [...]

The mortgage crisis might have been at the root of the global economic meltdown, but housing legislation seems destined to be among the last things Congress passes to address the downturn.
Legislation allowing struggling homeowners to save their homes through bankruptcy passed the House last week as part of a larger housing package, but the bill [...]

Over at Economist’s View, Christopher Thornberg offers some ideas for stemming the foreclosure crisis – and while you may not agree with them, I’d rate them all much higher on the scale than having former subprime lending executives make new fortunes buying up distressed assets.
From Thornberg, a California real estate economist:

Though they have accepted billions in federal bailout funds, banks are not required to ensure foreclosures don’t drag down surrounding communities.

The semi-grassroots, semi-astroturf “tea parties” against the stimulus get a thumbs-up from House Minority Leader John Boehner (R-Ohio).
In gatherings large and small and at kitchen tables across the nation, Americans who have played by the rules are growing increasingly angry about government rewarding irresponsible behavior and spending their money on bigger and bigger programs that [...]

As Dave Weigel notes, the Tea Party movement to protest the mortgage rescue plan and other government bailouts rolls on, with a planned rally Friday in front of the White House. The revolt over bailouts got a big boost last week with the televised rant by CNBC’s Rick Santelli against helping troubled borrowers, and only [...]

President Obama’s widely praised speech last night laid out the goals of his new housing plan and emphasized the government will help responsible homeowners. But it still left a lot of concerns unanswered, says Sean O’Toole, president of ForeclosureRadar.com, a California firm that tracks foreclosure data. Via Mortgage Insider, here’s O’Toole’s reaction:
Finally he has to [...]