Elsewhere I read that the economic stimulus pkg would only impact about 120K subprime borrowers: “Our updated analysis shows the Treasury Department’s plan involving streamlined loan modifications will prevent only 118,200 foreclosures—about 3% of the outstanding subprime mortgages with adjustable interest rates that are causing the current market turmoil. The Treasury plan, plus existing lender modifications, will barely make a dent in the growing foreclosure crisis and will allow subprime damage to continue spreading through the entire economy.” http://www.responsiblelending.org/issues/mortgage/research/updated-analysis-of-paulson-plan.html
Many of the borrowers also did helocs and since the house is depreciating..and their credit is shot…plus they don’t have the income..all spells no refinance. “…the make or break metric is home equity.”
Can Fannie Mae realistically get the resources to buy up these bad debts and refinance these?
