Good thing we have really smart people working at the Fed . . . (please sense the sarcasm here)
Fed official warns of an upsurge in home foreclosures, AJC
With millions of Americans facing the prospect of sharply rising mortgage payments, borrowers and their hometowns could face an upsurge in home foreclosures, a top Federal Reserve official told Congress Tuesday.
“The impact of mortgage delinquency and foreclosure on consumers and communities is one of great concern,” said Sandra Braunstein, director of the Fed’s Division of Consumer and Community Affairs. “We have much work ahead of us, as there is no one sure and easy fix.”
I really hope the Congress did not need Ms. Braunstein to tell them that the housing market is in a real pickle. Someone please tell me that our elected officials do not waste their time “learning” that the “impact of mortgage delinquency and foreclosure on consumers is one of great concern” (repeated for effect)!
I’m glad that at least someone has some sense in Washington:
Sheila Bair, chairman of the Federal Deposit Insurance Corp., did urge Congress to set uniform national standards for all lenders, a move that could squeeze less-qualified loan applicants even more.
The widespread problem with subprime mortgages suggests the country needs “a comprehensive response that assures that all lenders are subject to certain baseline requirements,” Bair said. “A national anti-predatory-lending standard would help assure basic uniform protections for all borrowers.”
Like I’ve been screaming at the TOP of my fingers for a LONG TIME . . . if there was some form of regulation or standards that ALL LENDERS MUST COMPLY WITH, we would have never gotten ourselves into this disaster.
Now the real question is how do we get out of it!
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Unfortunately, I think the only real solution to the problem at this point is the market correcting itself, which includes at the least a mild recession and a further decline in home values.
Ryan – I happen to think you’re correct. We are going to see a recession (mild or major – I’m not sure which, though), and home values will certainly continue to decline. There are many more foreclosures coming . . .