WH announces $2B for bridge loans for unemployed homeowners and $1B for HUD for same-HEMAP…
Update 4: Yves at NakedCapitalism sums up this latest plan beautifully:
…How is this supposed to help borrowers? Seriously. This is the government equivalent of a subprime teaser loan. But this is even worse. First, teaser borrowers paid at least a smidge of interest (even 2% is more than zero), which placed a teeny constraint on their ability to take on debt. Second, housing was at least appearing to increase, so it wasn’t entirely nuts (merely sorta nuts) to look to the principal value of the house as security and reason to extend yourself financially….
…This measure, as modest as it is, therefore looks like yet another backdoor transfer to banks, and a way to try to prop up housing prices (note the “stabilize housing markets” comment) and secondarily, funnel some cash to communities (note the loans are intended to be used for property tax payments too)….
Moderate in the Middle 