No Help for Commercial Real Estate Market?
So says Shaun Donovan, head of the Department of Housing and Urban Development. In an interview with The Washington Post, Donovan says the focus of the real estate recovery will remain on the housing market.
Clearly, the biggest focus has been on the single-family market. . . . We’re not going to have a program to modify mortgages on the commercial side, because it’s just not the same as keeping homeowners in their homes. It doesn’t have the same focus for us on the commercial side. It’s just a different situation.
Presumably, Donovan is talking only about HUD here, and not the Obama administration on the whole. As Martha wrote in this space last month, the $8 trillion commercial market is teetering on the edge of collapse, and could be the next bubble to burst. Funny how Washington policymakers are so quick to react to crises, but not to prevent them.