November 6, 2008
In this article the Washington Post explores the FDIC’s new model to work out loan modifications for troubles homeowners on a large scale. Earlier today I spoke with one of our community partners, Chris Krehmeyer, President and CEO of Beyond Housing. I asked him to provide a little bit of context to the FDIC’s new plan. Krehmeyer says that:
“This is the first piece of programmatic work that really focuses on the homeowner who is in trouble. All of the previous legislation has focused on lenders and financial institutions. Home foreclosures are what got us into the financial crisis so it’s good to see that they the FDIC is beginning to work with homeowners directly to allow them to stay in their homes.”
He also reports that while this is a great first step that it could go further:
“The irony here is that we’re asking homeowners to sift through documents that they might not understand, which is in a lot of cases what got them in trouble in the first place. The inclusion of not for profit counselors is absolutely critical in the process if it is to really be successful.”
Despite some problems with the program the FDIC is moving in the right direction, though Krehmeyer hopes that these steps forward continue between now and when President-Elect Obama takes office.
Click on the picture below to read the entire Washington Post Article.