Legal Commentary

Slouching Towards A New HOLC

By Big Tent Democrat

The NYTimes Ed Board approves of the slouching towards a new HOLC:

At a hearing on Thursday in the Senate Banking Committee, Sheila Bair, the chairwoman of the Federal Deposit Insurance Corporation, confirmed that the F.D.I.C. is working with the Treasury to streamline the reworking of troubled mortgages. The aim is to make the loans affordable over the long term so that borrowers can avoid foreclosure and keep their homes. Though details of the plan are not yet worked out, the outline calls for creating standardized criteria that would be used by mortgage servicers, the firms that handle collection and foreclosure proceedings for lenders and mortgage investors. Loans modified under the criteria would be eligible for a federal guarantee that would protect lenders and investors against default.

I welcome the recognition of the problem. I think these steps are clearly inadequate. A full blown new agency - a new HOLC, is necessary.

By Big Tent Democrat, speaking for me only

Full post as published by TalkLeft on October 26, 2008 (boomark / email).