“That plan has many of the elements of a proposal by Rep. Barney Frank, D-Mass., and Sen. Chris Dodd, D-Conn., requiring participating lenders to forgive part of the loan principal and then write a new loan that would be backed by the federal government through the Federal Housing Administration.””
Please read what you posted. A person signs a loan contract then can’t make the payments and goes running to the government and the government crams down the loan? Are you nuts.
I am not nuts. I believe I have posted the plan as found on the McCain web site. I for one do not understand the basis of why banks could not already write down the original loan and redo a new one.