Payments to 4.2 Million Borrowers Covered by Foreclosure Agreement to Begin April 12 WASHINGTON — Payments to 4.2 million borrowers are scheduled to begin on April 12 following an agreement reached by the Office of the Comptroller of the Currency and the Federal Reserve Board w
BusinessWeek Online - One supposed obstacle to sorting out the millions of mortgages that have gone bad is that the home loans have been bought by investment banks, bundled together into bonds, and sold to investors. This widespread process of "securitizing" loans makes it difficult to go back and modify the terms of individual mortgages so that strapped borrowers might be able to continue to make payments, according to mortgage industry experts. ...
Like most forms of hardship in our society, the foreclosure crisis is disproportionately affecting minorities. The New York Times conducted a study of foreclosures in the New York area and found, among other things:
I received several emails from readers regarding Can Bernanke Force Banks to Lend by Halting Interest on Excess Reserves?
Here are the specific sentences in question:
Banks lend if and only if both of the following are true.
They are not capital impaired
They have credit-worthy borrowers willing to borrow.
Reader Gil writes ....