From the FINANCIAL TIMES:
The US Federal Reserve has offered policymakers about a dozen ideas on how to aid the ailing US property market, warning that if no action is taken, home prices will continue to slump and restrain the current economic recovery…
Among the ideas is forming a national strategy to facilitate the conversion of foreclosed properties into rentals; allowing banks to rent their repossessed homes rather than forcing lenders to sell them; changing the compensation structure for mortgage servicers, companies that collect payments from borrowers and pursue foreclosures in the event of a default; creating a national online registry of liens to track ownership interests; and altering existing Obama administration policies to allow for more refinancings and mortgage restructurings.
Investors would suffer reduced losses, banks would save money, and more homeowners would either get to keep their homes or move into more affordable housing if the Fed’s suggestions were adopted, the central bank says…
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