Gary Edwards
The CMPS Institute on April 22 sent Congress a detailed proposal calling for government-backed loans to homeowners of up to 20 percent of the homeowner's current mortgage balance. "Negative homeowner equity is the one root problem that Congress can help solve," said Gibran Nicholas, chair of the CMPS .......... "If homeowners have no incentive to keep up their mortgage payments, the problems in the housing markets could continue to spread and plunge our country into a deep recession,".... "A voluntary loan-substitution program could reduce the number of defaults and dampen the decline in house prices - without violating contracts, bailing out lenders or borrowers, or increasing government spending,"
politics bailout banking martin-feldstein loansubstitution
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