Yal on Calculated Risk posted a link to this OFHEO presentation by James Lockhart. Note the 2 new programs on page 23. There is no $ limit on the “Home Stay” program to ease terms for homeowners who don’t pay their originally agreed loan obligations.
Between this and FAS 140 ‘clarifications’ and lots of other actions in process or under consideration, the full force of federal and other regulatory and private intervention is being readied. I’d be (pleasantly) surprised if prices fell by more than 20-30% in So Calif before these measures put a floor under the prices. There’s a Greenspan put for stocks. Housing goes beyond the Fed. To whom should we give credit for the nationwide housing put?
