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| Quotes |
In a speech in New York Monday night at the Columbia Business School, Mr. Bernanke said, “When the source of the problem is a decline of the value of the home well below the mortgage’s principal balance, the best solution may be a write-down of principal or other permanent modification of the loan by the servicer, perhaps combined with a refinancing by the Federal Housing Administration or another lender,” (emphasis added) Mr. Bernanke said, according to a text released by his office. In his previous detailed speech on the subject, delivered in Orlando, Fla., on March 4, to the Independent Community Banks of America, Mr. Bernanke talked of the advantages of voluntary principal write-offs — but didn’t explicitly link them to refinancing or insurance via the government’s FHA. Ben Bernanke, 14th Chairman of the Federal Reserve From: The Wall Street Journal |
... in the hands of financially motivated mortgage brokers or loan officers can be a prescription for trouble, as it can lead to behavior not in compliance with fair lending laws. Implicit in this statement is that when loan originators place discretion in the hands of financially motivated third-parties, loan originators must also put in place monitoring activities to guarantee that this discretion is not abused. Ben Bernanke, 14th Chairman of the Federal Reserve |
... and practices hurt not just borrowers and their families, but entire communities, and indeed, the economy as a whole. Ben Bernanke, 14th Chairman of the Federal Reserve |
It makes no sense to me that banks are still dragging their feet. In almost every scenario, modifying a loan is worth more than a foreclosed loan. Ted Lieu, California Assemblyman, quoted 9/20/2009, The Orange County Register, Business Section |
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