Mitria Wilson | Americans Underwater

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Mitria Wilson | Americans Underwater

  1. 1. Americans Underwater:Principal Reduction in Policy and Practice
  2. 2. Putting the Issue in Context
  3. 3. Americans Underwater: Principal Reduction as Policy
  4. 4. Americans Underwater: Principal Reduction as Policy
  5. 5. Americans Underwater: Principal Reduction as Policy
  6. 6. Americans Underwater: Principal Reduction as Policy
  7. 7. Americans Underwater: Principal Reduction as Policy
  8. 8. Principal Reduction as Policy
  9. 9. Americans Underwater: Principal Reduction as Policy Taxpayer Bailout of Reckless Borrowers? “It is absolutely egregious [to] ask people in Tennessee who played by the rules to bail out reckless borrowers in other parts of the country.” - U.S. Senator Bob Corker (R-TN)
  10. 10. NCRC 2012 Policy Agenda: Fact or Fiction? Is Principal Reduction A Taxpayer Bailout of Reckless Borrowers?
  11. 11. Americans Underwater: Principal Reduction as Policy A Bailout By Another Name? “What the proponents of principal reductions at Fannie and Freddie don’t talk about is what a transfer of wealth from taxpayers (again) to large banks such a program would represent.” - NY Times Journalist Gretchen Morgenson, March 25, 2012
  12. 12. NCRC 2012 Policy Agenda: Fact or Fiction? Is Principal Reduction Another Bank Bailout?
  13. 13. Americans Underwater: Principal Reduction as Policy Forgiving Mortgage Principal Invites Greater Risks?“Helping people who are behind on their mortgages wouldease the foreclosure crisis….Even so, it is a misguidedidea….Edward DeMarco, acting director of the FederalHousing Finance Agency… points out that it would rewardbad behavior. DeMarco foresees a strong chance that somepeople who are current on their payments would stop payingto qualify for the government’s generosity.” - USA Today Editorial Board, April 15, 2012
  14. 14. NCRC 2012 Policy Agenda: Fact or Fiction? Is Moral Hazard a Valid Defense to Fannie and Freddie Offering Principal Reduction?
  15. 15. Principal Reduction in Practice
  16. 16. NCRC 2012 Policy Agenda Questions?

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