Wednesday, November 05, 2008

WSJ: Treasury and FDIC Close to Announcing Mortgage Modification Program

by Calculated Risk on 11/05/2008 11:31:00 PM

This WSJ story on possible additional options for using the TARP suggests that a mortgage modification program will be announced soon:

The report addresses the issue of trying to slow the record levels of foreclosures. "In particular, Treasury will continue efforts to ensure loan modifications are sustainable," said the report. A separate Treasury report detailing minutes of an Oct. 13 meeting of members of the Financial Stability Oversight Board suggested the Treasury is focusing on how to address ailing mortgages.
...
[T]he Treasury, the Federal Deposit Insurance Corp. and other government agencies are said to be close to announcing a government program to address residential foreclosures at the root of the crisis.
Meanwhile, in California, Governor Schwarzenegger is seeking a 90 day delay on foreclosures - from Bloomberg: Schwarzenegger Seeks to Save Homeowners With Foreclosure Delay
California Governor Arnold Schwarzenegger proposed a 90-day stay on home foreclosures in California ... Schwarzenegger said he will ask lawmakers to consider delaying foreclosures when he orders them into a special session tomorrow to deal with the state's ballooning budget deficit.