opinion

Who should be responsible for helping homeowners who default on their mortgages?


By PBN Staff
Posted 2/26/09

The last two years have been a very painful reckoning for individuals and financial institutions that engaged in risky behavior.

The individuals signed for loans that in many cases they could not afford on the assumption that rising real estate prices would allow them to re-finance the loans and they could flip themselves into a strong financial position.

The banks and brokers making loans granted them to people who provided no tangible evidence that they could re-pay the loans, all on the assumption that they could sell the loans into the capital markets and pocket the transaction fees without having to deal with the likely defaults.

Unfortunately, the way out of this massive Ponzi scheme requires either a continuing wave of foreclosures, which threaten to undo both banks and homeowners (whether or not they are directly involved in the collapse of the housing market), or modification of the loans, with banks, homeowners and taxpayers suffering.

Where do you stand on this issue?

Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement