He offered up $1 million as the amount that FannieMae might cover per mortgage, up from $417,000 currently.
Wow.
These programs were supposed to be to help people buy their first home, not their dream home.
Something else has to be done.
I wonder if some smart economist ought not to suggest something like a re-insurance market for mortgages. It's a way to get larger amounts covered, without suggesting that the government triple its commitment to home lending.
Whatever the case, something proactive needs to be done to keep ahead of the foreclosure curve, from a policy perspective. That probably includes both debt workthrough and other mechanisms, but not fundamental changes.
Thursday, November 8, 2007
Bernanke Speaks
