California’s Attorney General has called for a halt to foreclosures in the state.
Such a move would gum up the free market, render housing business less efficient, and make investors less likely to put money into housing.
Ahh, but it feels good to call for an end to foreclosures. It is emotionally satisfying. It doesn’t do good, but it feels good to stop the free market in its tracks and to try to legislate away bad news.
Why would bankers want to extend mortgage loans when the terms become increasingly onerous?
For all the time about the ills of robo-signing, I have not heard of one example of a homeowner up to date on his mortgage payments being thrown out of his home.
The AP reports: Harris’ increased ability to defend homeowners would be paid for with a $25 fee on each notice of default filed by a lender. Prosecutors would have four years to bring charges in foreclosure-related crimes, up from the current one year.
The bills would give renters more notice before they have to vacate a foreclosed home and give cities more tools to fight neighborhood blight from vacant houses. Lenders would have to provide borrowers with a single point of contact if they need to discuss foreclosures or refinancing, without getting passed around to different departments.
Wednesday’s announcement comes days after Harris called for a halt to foreclosures throughout California.
Last week, she asked the Federal Housing Finance Agency, which oversees loans backed by Fannie Mae and Freddie Mac, to suspend foreclosures and consider reducing mortgages for at-risk homeowners.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/02/29/state/n123821S75.DTL#ixzz1noRey7Rc