The $700 billion bailout money has been set aside but there is a lot of jockeying going on trying to decide how to help slow down the wave of foreclosures at the heart of the world financial crisis. The FDIC is working up a plan that would give incentive to banks to modify loans rather than foreclose on people by offering to insure those modified loans against foreclosure. The White House is skeptical of that plan because they say it will give homeowners incentive to go delinquent on loans in order to get better terms. All in all, this is a mess that is going to take a long time to clean up. See a recent WSJ article on the subject here.
Comments Off on FDIC and White House wrangling over next foreclosure prevention steps Posted by G.R.A. Admin on Tuesday, November 4th, 2008