Homeowners Struggle To Pay Mortgages

More mortgage modification news.

Will the schemes and manipulations never end?

Why not let the free market sort it out?

Here’s an article from CNBC sent to me by Karen Triggiani:

If you’ve demonstrated a track record of paying your mortgage consistently, not late, on time, for the past 24 months, we’re going to re-fi you without documentation, without looking at an appraisal, we’re just going to lower your mortgage rate,” said Doug Dachille, CEO of First Principles Capital Management.

Dachille, formerly president of Zurich Capital Markets and global head of proprietary trading for JP Morgan [JPM 37.73 0.23 (+0.61%) ], acknowledged that if banks became more flexible in their lending practices toward homeowners, it would would upset investors of mortgage-backed securities. But he added that those investors have reaped the financial rewards of the Federal Reserve’s policy of mortgage-backed securities to help keep interest rates low.

“Mortgage-backed securities investors have gotten a benefit from something that was unprecedented too,” he added. “And that was that the Fed was buying $1.25 trillion (of mortgage securities) at a time when people couldn’t re-fi, driving up the price to historical levels.”

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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