Central Bank’s Modifications
There seems to be plenty of talk about modifying loans but very little action. I guess we will have to wait and see. According to the article below from The Wall Street Journal, The Federal Reserve has developed a new policy to modify mortgages tied to assets it acquired via recent federal bailouts, the latest step in the government’s attempt to alleviate the mortgage crisis.
The goal of the policy, which lawmakers have sought for months, is to “avoid preventable foreclosures” on residential mortgage assets that are held, owned or controlled by the central bank, Fed Chairman Ben Bernanke wrote to top lawmakers Tuesday.