The point that we liked most about Mr. Wylie’s letter was “limiting interest rates on the mortgages”. That’s an approach which goes directly to the people “in trouble”.

FIRST, the Banks that are receiving funds may not “hold” very many RE loans, and therefore can NOT change anything more than what they DO hold.

If they sold or “securitized” prior RE loans, they do NOT still hold them, and may not have the legal ability to change all of the loans that they did originate.

SECOND, “securitizations” of RE loans began, after W was elected, in 2003. By 2007 they were more than 50% of the RE loans issues in Cal, Fla, Nev and AZ.
NONE of those loans were originate by “The Banks” you refer to, and NONE of them are currently HELD by them – which means that about 50% of all RE loans made in the last 7 years are NOT covered by your suggestion.

The even worse news, is that they are not covered by Obama’s plan either, for two reasons:

FIRST, in those 4 states ALL loans, even those of Those Banks, made in the last 5 years do not fall under they 105% limit, they have fallen a lot farther than than.

SECOND, by not covering “securitized” RE loans, eliminating “investor homes” and people who have lost their jobs…, there are hardly ANY current RE loans in those states that are affected – by Obama’s Plan or yours.