A New Twist on an old Beatles Tune: We'll Get By with a Little Help from The Fed

Let’s hear it for Federal Reserve Chairman Ben Bernanke! In a letter to Senator Charles Schumer dated Monday, Mr. Bernanke said the development of “a broader range of mortgage products which are appropriate for low and moderate-income borrowers, including those seeking to refinance” might help the current situation. ”Such products could be designed to avoid or mitigate the risk of prepayment shock and to be more transparent with respect to their terms.” Bravo Ben! With an avalanche of foreclosures set to hit the US economy over the next year, we couldn’t be happier that the Fed Chief is weighing-in on the side of home owners. The key now is to get Democrats and Republicans to agree on remedies involving the Federal Housing Administration, Fannie Mae and Freddie Mac. Fed Chief Bernanke has publicly stated his views on this subject as well. “The Congress might wish to consider F.H.A. reforms that allow the agency more flexibility to design new products and to collaborate with the private sector in facilitating the refinancing of creditworthy subprime borrowers facing large resets.” Let’s hope key congressional leaders are listening. MS Las Vegas Real Estate will keep you posted.

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