Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/wouldnt-mortgage-back-securiti Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Wouldn’t mortgage-backed securities gain value if homeowners could refinance their homes? Economy Oct 3, 2008 2:58 PM EDT Question/Comment: This is what I don’t get: If the problem is that the mortgage-backed securities hold little value because a lot of people are unable to pay their mortgages, wouldn’t those securities gain value if homeowners were allowed to refinance their homes at rates they could pay? What am I missing? Paul Solman: You are missing nothing. See the full page ads in today’s (Friday’s) NY Times (p. C1) and Wall St. Journal (C5) for a similar proposal. Bruce Marks of NACA, the Neighborhood Assistance Corporate of America, has been working on, and advocating, this approach for years. The Democrats have reportedly been trying to include such provisions in any bailout bill. A free press is a cornerstone of a healthy democracy. Support trusted journalism and civil dialogue. Donate now
Question/Comment: This is what I don’t get: If the problem is that the mortgage-backed securities hold little value because a lot of people are unable to pay their mortgages, wouldn’t those securities gain value if homeowners were allowed to refinance their homes at rates they could pay? What am I missing? Paul Solman: You are missing nothing. See the full page ads in today’s (Friday’s) NY Times (p. C1) and Wall St. Journal (C5) for a similar proposal. Bruce Marks of NACA, the Neighborhood Assistance Corporate of America, has been working on, and advocating, this approach for years. The Democrats have reportedly been trying to include such provisions in any bailout bill. A free press is a cornerstone of a healthy democracy. Support trusted journalism and civil dialogue. Donate now