NEW YORK (MarketWatch) -- New York Gov. Eliot Spitzer said Thursday that he wants mortgage lenders and the federal government to create a fund that will help stabilize the subprime home-lending market.
Details of the proposed fund were sparse, but the governor compared its use to that of the federal government's injection of cash into the credit markets through discount-rate cuts, creating liquidity and buttressing investor confidence.
"The issue of subprime lending is something we care about very much," Spitzer said at a press conference, adding that the "dramatic increase" in delinquency rates on subprime loans is a matter of economic security.
pitzer's proposal was announced in connection with a package of initiatives designed to help subprime borrowers keep their homes. The initiatives include a loan-modification program to bring down monthly payments; a $2 million matching-grant program for counseling and advocacy groups to help homeowners facing delinquency; and proposing legislation that would make lenders and brokers more accountable.
"We need this to happen. ... Otherwise the trend line will continue to lead to massive write-downs and hurt [lender] portfolios," he said.
http://www.marketwatch.com/news/sto...96-0F5C-4E6D-B2F8-0E1E59344714}&dist=hplatest
Details of the proposed fund were sparse, but the governor compared its use to that of the federal government's injection of cash into the credit markets through discount-rate cuts, creating liquidity and buttressing investor confidence.
"The issue of subprime lending is something we care about very much," Spitzer said at a press conference, adding that the "dramatic increase" in delinquency rates on subprime loans is a matter of economic security.
pitzer's proposal was announced in connection with a package of initiatives designed to help subprime borrowers keep their homes. The initiatives include a loan-modification program to bring down monthly payments; a $2 million matching-grant program for counseling and advocacy groups to help homeowners facing delinquency; and proposing legislation that would make lenders and brokers more accountable.
"We need this to happen. ... Otherwise the trend line will continue to lead to massive write-downs and hurt [lender] portfolios," he said.
http://www.marketwatch.com/news/sto...96-0F5C-4E6D-B2F8-0E1E59344714}&dist=hplatest