In Sunday’s New York Times Alan S. Blinder (former vice chairman of the Federal Reserve) noted I-Fav Chris Dodd’s support for refinancing distressed mortgages to stave off foreclosure.
The approach is simple. A semi-public Corp buys the distressed loan at a discount from the lender. Taken into account the discounted value and current interest rate, the Corp refinances the homeowners loan at affordable terms. (more…)
