Tuesday, November 18, 2008

Paulson's Failures, Vol I, Chapter 11

He had time to direct his people to run around and hire money managers and so forth, but according to today's testimony, he's still studying the issue of preventing foreclosures, more than a year after it became consensus that maybe 2 million families were at risk this year alone...

It's not just families at risk. Check it out:

The performance of private label mortgage backed securities that were sliced and diced and sold to investors is just the opposite of Fannie Mae’s and Freddie Mac’s. Private label securities represent less than 20% of the mortgages but 60% of the serious delinquencies. As the regulator of the housing GSEs that own over a quarter of a trillion dollars of private label securities, I ask the private label MBS servicers and investors to rapidly adopt this program as the industry standard. Not only will this streamlined program assist borrowers, but broad acceptance and effective implementation could stabilize communities and property values.

James B. Lockhart, III, Bush Appointee, OFEHO, introducing a new "voluntary program", November 11th

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