2008-05-07thetruthaboutmortgage.com

The bill would permit the courts to delay foreclosure up to one year for subprime borrowers who meet specific conditions, allowing at-risk homeowners to work with their respective lenders to avoid losing their homes.

Note that this is not a blanket moratorium. We got a kick out of this little snide remark from one lawmaker:

“The federal government was quick to bail out big businesses like Bear Stearns from near-collapse, but seems to have all but forgotten the everyday common household victims of this national crisis,” said Assembly Speaker Sheldon Silver.

The sentiment is well-received, I'm sure, but we'd remind the Speaker that the Federal Government is not the Fed, which more or less acted on its own, as a renegade bureau answering to no one. The Federal Government (proper) has in fact done absolutely nothing. And we're not so sure that's such a bad thing -- maybe the lenders should have to make good on distressed loans themselves.


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