Billionaire investor Wilbur Ross said Thursday his company, WL Ross & Co., would commit $1 billion towards an insurance program as an alternative to the proposed $700 billion bailout.
“The government would guarantee one half of the mortgages that had been reduced to the true net value of the house, after selling commissions,” said Ross, CEO of WL Ross, in an interview with CNBC. (To hear more about Ross's plan, watch the video.)
“Then that one half that was guaranteed by the government could be sold separately by the lenders—so that would free up liquidity and could be sold on a much lower yield than the mortgage itself.”