Well-known Economist Jack McCabe’s Ideas on American Home Ownership Recovery
It is no secret that the economy in the US is not healthy. It is also no secret that millions of Americans have lost their homes and millions more stand to have that happen as they are falling further and further behind in their payments. There is a large shadow market of foreclosed properties and beyond that a large group that will find themselves in that same pool one of these days soon based on the track they are on.
Jack McCabe is a well-known economist who has recently gone on the record with his own ideas about what will help to ease this situation. He has made 3 major suggestions that are worthy of some pretty serious consideration. The first is that mortgage companies need to consider making some fairly substantial loan modifications.
The second step that goes along with this, and is certainly related, is then allowing for reductions in the mortgage principal. He stresses that both of these must be done in tandem or they are not fully effective. They work together. The third suggestion he made is that Fannie Mae and Freddie Mac should purchase new residential mortgage backed securities. In other words, new mortgages are going to follow some new, tighter rules that require a more conservative payment, credit and income verification criteria. When all of these things are put into place then it is possible America can once again be realizing that dream of home ownership.
