U.S. Plans Big Expansion in Effort to Aid Homeowners

FHA should solicit from homeowners and publish documented factual information about predatory lenders who in 2006 and 2007 appraised homes at 60% or more above fair market value and offered 85% or more of that value in Variable rate mortgage, no income data required. Lawyers need to be sure that restructuring doesn't let these lenders off the hook. Loan modifications should be based on assessments for tax purposes, not initial value for mortgage.

Sadly, no.

The appraisers and the mortgage agents are all gone. The lenders sold the notes and pocketed the fees. They are also gone.

The proposed loan modifications wipe out the second lien holders and give unacceptable "hair cuts" to the bond holders. Those loans are headed for foreclosure. The bonds will be worth almost nothing.

"Stupidity carries a death penalty."