Now that the FDIC has taken over IndyMac it plans an aggressive program to refinance the failed bank's mortgages to stem foreclosures.
This sets a precedent for mortgage relief. And you could consider it a bailout for some struggling homeowners.
Many serious people are beginning to think the country might need to create some kind of government corporation to buy up bad mortgages, repackage them into a more affordable loan and shore up the housing market.
The FDIC is leading the way on IndyMac. If it succeeds, expect the next Congress to take a hard look at what worked. FDIC Chairman Sheila Bair has been out front on the housing crisis. She's a creative leader who is looking for real solutions.
Comments
Another government corporation that would grow large and out of control? Another bail out? Are these the real solutions, or just more ways of postponing the payment due the piper?
Here are some questions that need answers: Where are the American jobs that are secure enough to make sure we can repay those 30-year mortgages? And what exactly does it show about America when it's reported that the average American house size has more than doubled since the 1950s? And here's a tough one, can a culture of excess and waste thrive indefinitely on borrowed money?