Reminiscing the 2008 US housing crisis, Austin Aaronson explores whether history is about to repeat itself
From time to time, as societal and economic issues have warranted, the US federal government has become involved in relief efforts intended to render assistance to struggling homeowners fighting foreclosure.
Stemming from the mortgage meltdown of 2008 and beyond, the Home Affordable Modification Program (HAMP) allowed for the deceleration of loans in foreclosure and compulsory refinancing on terms more favorable to the mortgagee, provided mortgagors met certain financial conditions, including specific income-to-payment ratio and loan-to-value ratio criteria.
For those not qualified, an alternative called the Home Affordable Refinance Program, or HARP, which involves refinancing of delinquent mortgages, as the name suggests, e...
“…with growing impatience with these safe but slow-yielding lending practices, a shifting paradigm occurred which gave rise to the practice of mortgage securitization lending.”
