[rocksblues]

Unlike in years past, when just a bank and a borrower were involved in a mortgage, today's loans have been bundled together, sliced into securities and sold to investors. That has created problems for officials trying to help borrowers, because so many parties are involved.

Bottom feeders on society. They should fell the pain not the American taxpayer!

[org.whodat]

Alan Fournier, a fund manager at Pennant Capital Management LLC, Chatham, N.J., predicted that the plan being pushed by the Treasury Department will prolong the pain of the housing slump.

He is correct and the government needs to get out of a market correction.

[PAR35]

The investors might have a pretty good lawsuit against any servicers who agree to across-the-board lower rates for the borrowers.

[Don Corleone]

Let the banks fix the problem. They made the loans. They certainly don’t want the houses back. What in hell would they do with them? I am sure they would rather have some monthly’s coming in than a few hundred/thousand empty tract houses sitting out there being vandalized.

[Bean Counter]

Let’s be clear...what is being discussed is unprecidented, in that the legislation would essentially order banks to continue to carry bad debts for up to 2 years, in the belief that will be sufficient time for the borrower to get his act together and refinance to a better rate.

The problem is that even with 2 more years, many of these people who are in default and facing forclosure still won’t qualify for a prime mortgage, and all this does is put off the inevitable and extend the crisis.

Many of these mortgages need to be foreclosed immediately. And many of the lenders who are holding this bad paper, like Washington Mutual specifically, put themselves in this position in the first place, and do not deserve to benefit from their own misconduct.

[snowsislander]

"There's a part of this that's just morally repugnant. The problem is that the policy makers are talking to servicers about giving away other people's money," said Mark Adelson, a principal of Adelson & Jacob Consulting LLC, which consults on securitization and real-estate issues. "It's not the servicers' money, but shareholders' and investors' money."

I think that wholesale modifications to existing loan terms are going to face strong resistance from at least some of the people who have invested in securities derived from those loans.

[cherry]

perhaps its better to NOT have hundreds of thousands default on their homes, and leaving banks to unload them at huge loss......

however, don't I feel silly having actually bought what we could afford, not buying every fancy car or Humvee or 4 wheeler or gone on fancy vacations because I didn't want to run up the HELOC or my cc.....

my, to just get what I could, to save, to delay purchases, to not buy that vacation home or investment home because it didn't feel right....

gee I could have had the govt step in and help me speculate up the ying yang and the wazzuuu..

[P-40]

It is funny how the ‘make money in real estate’ ads are still running here. :)

[Doctor Don]

When the banks start sharing their profits with me thay can have my taxes to bail them out.....NOT UNTIL THEN!

[DaGman]

"He said it would merely delay inevitable foreclosures for some people who can't afford their homes, while allowing holders of mortgage-backed securities to put off marking down their assets"

In other words, ease into a crash rather than hit one abruptly.

[airborne]

...according to Banc of America Securities...

Any relation to Bank of America, the guys who were handing out credit cards to illegal immigrants carte blanche, with no Social Security numbers or addresses?