Mortgage Plan: They're Trying, But OY! So Much To Think About
Ok, now that my eyes are blurry and my head is spinning, I realize that all the details the Treasury Department gave today make this plan sound far more complicated than even I imagined. Not only is this a case by case analysis of many different facets of a borrower's credit-worthiness, it also requires each and every borrower to contact their lender on their own.
There is no blanket policy (thank goodness) but I have to ask where all these sevicers are going to get the man and woman power to process all this?
I'm also wondering how many folks who don't need any help are going to clog the phone lines trying to get a better deal. I guess on a bright note this could boost jobs numbers because lenders are going to have to hire thousands of new employees to process all the borrower requests.
Also this plan relies far more on refis than I expected and I wonder about pre-payment penalties as well as other costs associated with refis. I don't mean to pooh-pooh the plan. Look, at least they're trying something, but dare I say what everyone is thinking: OY.
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