And why all the haste? Well, it appears that cheerleading, letting the banks foreclose when investors would prefer deep principal mods to viable borrowers, ill-conceived Federal mortgage modification programs, and a head-in-the-sand approach to documentation problems and procedural abuses have done wonders for the housing market, which most experts expect to fall another 10% this year. The Administration appears prepared to redouble its efforts in this failed strategy since it lacks the guts to do anything that might actually be effective. But Team Obama still appears to believe that all problems can be solved via public relations. The fact that HAMP was an embarrassment appears to have led to the bizarre conclusion that the remedy is better modification theater:
That need for speed seems to be coming from the White House, who by all accounts want to move on a settlement quickly, and to use it as a way to promote economic recovery more than anything….The rush to settle, driven by Washington, appears to serve a political function of “doing something” about the housing market, which is rapidly falling apart.
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