Dean is an asset deflationist. I am too, as long as they're not my assets.
I like own-to-rent, though I wonder about practicalities -- the legal issue of dealing with contract/property/uniform commercial code law, and the administrative one of how everything gets set up. One important angle is the need to minimize the time houses are vacant as a result of foreclosure. You get bad neighborhood ripple effects, further problems. > ----- Original Message ----- > From: [EMAIL PROTECTED] > Sent: 11:34 am > To: [email protected] > Subject: [Pen-l] how stop foreclosures? > > > For those of you who want to learn more about current proposals for > government policies to reduce housing foreclosures (the most important > political economic issue of the moment), two excellent websites are: > > Center of Economic and Policy Research (Dean Baker): > http://www.cepr.net > > Center for Responsible Lending: > http://www.responsiblelending.org > > Somewhat surprisingly, both Baker and the CRL oppose the House bill > sponsored by Barney Frank (HR 5830), which would authorize the FHA to > insure refinanced mortgages up to about 85% of the current market value > of the house. > > Baker opposes this bill because: (1) the refinancing is initiated > voluntarily by the lenders, so they will refinance only the worst > mortgages, which will likely default down the road, which the taxpayers > will have to pay for; and (2) housing prices are likely to decline more > than 15% in some parts of the country (mainly the two coasts), which > will lead to further defaults and foreclosures, and more taxpayer costs. > > This bill passed the House last week, but Bush has threatened to veto > it, because it would “bail out both lenders and borrowers”. The > House > is unlikely to override Bush’s veto. Its fate in the Senate is > uncertain. > > Baker told me that he testified in Congress and supported the > Republicans in opposing the Frank bill. Strange bedfellows on the > housing bill! (I agree with Baker, by the way). > > Baker’s alternative proposal is what he calls an “own-to-rent” > plan, > which would allow homeowners to stay in their homes as tenants (for up > to 10 years), and would pay the prevailing rent in the area. More > details on the CEPR website. > > The CRL supports a bill that has been introduced in both the House and > Senate which would allow bankruptcy judges to modify the terms of > mortgage contracts to make them more affordable. Again more details on > the CRL website. > > The CRL’s proposal makes the most sense to me. And I also like > Baker’s > proposal. > > What do others think? > > Fred > > > ---------------------------------------------------------------- > This message was sent using IMP, the Internet Messaging Program. > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l >
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