Skip to comments.CBO Report Finds GSEs Responsible for 13 Percent of Underwater Borrowers
Posted on 05/03/2013 4:17:30 PM PDT by Oldeconomybuyer
The Home Affordable Modification Program (HAMP) was established to assist the nations underwater borrowers get out from under their massive mortgage debt.
In a Congressional Budget Office report, both Freddie Mac and Fannie Mae have been found to be responsible for nearly 13 percent of underwater borrowers. The report, Modifying Mortgages Involving Fannie Mae and Freddie Mac: Options for Principal Forgiveness, finds that, in order for the government-sponsored enterprises (GSEs) to use principal forgiveness for borrowers in an effort to provide assistance for those to benefit from HAMP:
+ Result in small savings to the government,
+ Slightly reduce mortgage foreclosure and delinquency rates, and
+ Slightly boost overall economic growth.
(Excerpt) Read more at nationalmortgageprofessional.com ...
Divised by people who smoked too much Hemp.
No fan of the GSEs or any public/private partnership (the privates get the profits and taxpayers eat the losses) but aren’t they underwater mostly because home prices have declined?