he is telling lenders to work with these people to keep them in their homes by offering them better mortgage deals
Does he realize that all those mortgages have been reformulated as CDO/CMOs and as it is they are illiquid now? Adding more variables in the form of lower yields, stretching out the loan term etc., will make them all completely worthless. That is many Trillions of $ gone. Mortgages will become simply unavailable. That will kill the housing market. He should use his head before opening his mouth.
