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Author: Nina Liao Publisher: ISBN: Category : Languages : en Pages : 39
Book Description
The U.S. bankruptcy system has served as a safety net for millions of Americans for the last 110 years, but it is failing to prevent foreclosures today. Amid angry investors pointing fingers at Wall Street and nervous federal officials answering to allegations, economists and bankruptcy judges debate the controversial modification of loans, a process called cram-down. Cram-down is a feature of bankruptcy law that permits a debtor to pay a creditor the value of the collateral instead of the full value of the loan. Under current law, judges can modify mortgages on vacation or second homes. Oddly, the Bankruptcy Code creates an exception for mortgages secured solely by the debtor's primary residence. For millions of distressed homeowners, this exception forces them to pay their mortgages in full despite sharply declining home values. Proponents of cram-down advocate for the elimination of this exception, but opponents warn that changing the status quo could exacerbate the housing crisis.Although keeping the current law is unacceptable, cramming down all undersecured mortgages is too risky because it can reduce access to credit and obstruct homeownership. Congress needs a unique two-part strategy that can adequately relieve Chapter 13 debtors affected by the recession while creating a sustainable bankruptcy system. First, Congress should pass a temporary cram-down relief measure. It should then implement a permanent system that relies on judicial discretion to modify loans consistent with jurisdictional Chapter 13 practices and needs. Based on the established means test of the 2005 Amendments, the temporary measure should provide relief quickly to distressed homeowners in Chapter 13, particularly victims of predatory lending. The relief measure should sunset, however, to account for unforeseeable consequences of cram-down. The permanent system will differ in that, while judges can continue to modify loans, they must treat cram down as a last resort and carefully pursue an objective inquiry. If designed and monitored carefully, cram-down can be a win-win proposition.
Author: Nina Liao Publisher: ISBN: Category : Languages : en Pages : 39
Book Description
The U.S. bankruptcy system has served as a safety net for millions of Americans for the last 110 years, but it is failing to prevent foreclosures today. Amid angry investors pointing fingers at Wall Street and nervous federal officials answering to allegations, economists and bankruptcy judges debate the controversial modification of loans, a process called cram-down. Cram-down is a feature of bankruptcy law that permits a debtor to pay a creditor the value of the collateral instead of the full value of the loan. Under current law, judges can modify mortgages on vacation or second homes. Oddly, the Bankruptcy Code creates an exception for mortgages secured solely by the debtor's primary residence. For millions of distressed homeowners, this exception forces them to pay their mortgages in full despite sharply declining home values. Proponents of cram-down advocate for the elimination of this exception, but opponents warn that changing the status quo could exacerbate the housing crisis.Although keeping the current law is unacceptable, cramming down all undersecured mortgages is too risky because it can reduce access to credit and obstruct homeownership. Congress needs a unique two-part strategy that can adequately relieve Chapter 13 debtors affected by the recession while creating a sustainable bankruptcy system. First, Congress should pass a temporary cram-down relief measure. It should then implement a permanent system that relies on judicial discretion to modify loans consistent with jurisdictional Chapter 13 practices and needs. Based on the established means test of the 2005 Amendments, the temporary measure should provide relief quickly to distressed homeowners in Chapter 13, particularly victims of predatory lending. The relief measure should sunset, however, to account for unforeseeable consequences of cram-down. The permanent system will differ in that, while judges can continue to modify loans, they must treat cram down as a last resort and carefully pursue an objective inquiry. If designed and monitored carefully, cram-down can be a win-win proposition.
Author: Robert M. Hardaway Publisher: Bloomsbury Publishing USA ISBN: 0313382298 Category : Business & Economics Languages : en Pages : 284
Book Description
This meticulously documented work sets forth the major causes of the greatest asset bubble in world economic history—the American housing bubble, which began in 1940 and collapsed in 2007. In the aftermath of the American housing collapse in 2007, many ask why. The Great American Housing Bubble: The Road to Collapse asks a different and more fundamental question—how the bubble was created in the first place. To answer that question, it examines the causes, both political and economic, of the American housing bubble, created between 1940 and 2007. Those causes encompass everything from federal income tax subsidies for housing to local exclusionary policies, banking, accounting, real estate appraisal, and credit agency rating practices and policies. The book also takes into account the impact of greed, government regulation, speculation, and psychology—including blind faith in investment advisors—on the creation of the greatest asset bubble in the economic history of the world. The author takes a comparative historical approach, examining the current crisis in the light of notorious bubbles of the past. In the end, he concludes that the events precipitating the most recent collapse can be traced, at least in part, not to too little government regulation, but to too much.
Author: Eric A. Posner Publisher: ISBN: Category : Bankruptcy Languages : en Pages : 22
Book Description
The housing crisis threatens to destroy hundreds of billions of dollars of value by causing homeowners with negative equity to walk away from their houses. A house in foreclosure is worth 30 to 50 percent less than a house that a homeowner either retains or sells on the market, and a foreclosed house damages neighboring property values as well. We advocate a reform of Chapter 13 that would allow homeowners to strip down the value of their mortgages in a prepackaged bankruptcy. Such a plan would give homeowners an incentive to keep or resell their homes, thus reducing the market value loss of homes while protecting the effective value of creditors' interests. Two further key elements of the plan are that it uses prices based on the average house price in a particular ZIP code, which reduces moral hazard; and it is automated, requiring only a rubber stamp by a bankruptcy judge or other official, thus preserving judicial resources. Other plans, including that of the Obama administration, are compared.
Author: Franklin Allen Publisher: FT Press ISBN: 0132478897 Category : Business & Economics Languages : en Pages : 25
Book Description
This is the eBook version of the printed book. This Element is an excerpt from Financing the Future: Market-Based Innovations for Growth (9780137011278) by Franklin Allen and Glenn Yago. Available in print and digital formats. How the housing bubble really happened: an explanation that’s simple, clear, sensible, authoritative, and short! The genesis of the housing bubble emerged from the ashes of the dot-com bust. To alleviate the downturn, the Federal Reserve drastically reduced interest rates, and the era of easy credit was under way. Other nations with massive foreign reserves were drawn to invest in the U.S., and, with Treasuries offering only meager returns, they began to eye mortgage-backed securities as a “safe” vehicle offering higher yields....
Author: Reed Hundt Publisher: RosettaBooks ISBN: 0795352212 Category : Political Science Languages : en Pages : 393
Book Description
“The blow by blow story of a president and his team wasting the ‘opportunity’ of the Great Recession to change the fundamentals of the economy.” —Steven Brill, New York Times–bestselling author This book is the compelling story of President Obama’s domestic policy decisions made between September 2008 and his inauguration on January 20, 2009. Barack Obama determined the fate of his presidency before he took office. His momentous decisions led to Donald Trump, for Obama the worst person imaginable, taking his place eight years later. This book describes these decisions and discusses how the results could have been different. Based on dozens of interviews with actors in the Obama transition, as well as the author’s personal observations, this book provides unique commentary of those defining decisions of winter 2008–2009. A decade later, the ramifications of the Great Recession and the role of government in addressing the crisis animate the ideological battle between progressivism and neoliberalism in the Democratic Party and the radical direction of the Republican Party. As many seek the presidency in the November 2020 election, all candidates and of course the eventual winner will face decisions that may be as critical and difficult as those confronted by Barack Obama. This book aims to provide the guidance of history. “A powerfully lucid, compelling and surprising achievement . . . makes a subtle but irresistible argument that, given the conservative undertow of American politics, liberals and progressives who are serious about change can’t just wing it but must prepare detailed economic policy analyses and prescriptions long in advance of taking power.” —Congressman Jamie Raskin, Representative from Maryland’s 8th District
Author: Richard J. Durbin Publisher: DIANE Publishing ISBN: 1437912559 Category : Law Languages : en Pages : 242
Book Description
Witnesses: Thomas Bennett, Bankruptcy Judge, U.S. Bankruptcy Court for the N. Dist. of AL; Jacqueline Cox, Bankruptcy Judge, U.S. Bankruptcy Court for the N. Dist. of IL; Joseph Mason, Drexel Univ.; Nettie McGee, Chicago, IL; Mark Scarberry, Pepperdine School of Law, and Amer. Bankruptcy Inst.; Henry Sommer, Nat. Assoc. of Consumer Bankruptcy Attorneys; Mark Zandi, Moody¿s. Submissions for the Record: Amer. Bankers Assoc.; Financial Serv. Roundtable; Thomas Bennett, Bankruptcy Judge; Erwin Chemerinsky, Duke Univ.; Consumer, and civil rights advocate; Consumer Fed. of Amer.; Consumer Mortgage Coalition; Jacqueline Cox, Bankruptcy Judge; Leadership Conf. on Civil Rights. Illus.
Author: Mark Zandi Publisher: FT Press ISBN: 0133087492 Category : Business & Economics Languages : en Pages : 1044
Book Description
How the financial crisis really happened, and what it really meant: 3 books packed with lessons for investors and policymakers! These three books offer unsurpassed insight into the causes and implications of the global financial crisis: information every investor and policy-maker needs to prepare for an extraordinarily uncertain future. In Financial Shock, Updated Edition, renowned economist Mark Zandi provides the most concise, lucid account of the economic, political, and regulatory causes of the collapse, plus new insights into the continuing impact of the Obama administration's policies. Zandi doesn't just illuminate the roles of mortgage lenders, investment bankers, speculators, regulators, and the Fed: he offers sensible recommendations for preventing the next collapse. In Extreme Money, best-selling author and global finance expert Satyajit Das reveals the spectacular, dangerous money games that are generating increasingly massive bubbles of fake growth, prosperity, and wealth, while endangering the jobs, possessions, and futures of everyone outside finance. Das explains how everything from home mortgages to climate change have become fully financialized... how "voodoo banking" keeps generating massive phony profits even now... and how a new generation of "Masters of the Universe" has come to own the world. Finally, in The Fearful Rise of Markets, top Financial Times global finance journalist John Authers reveals how the first truly global super bubble was inflated, and may now be inflating again. He illuminates the multiple roots of repeated financial crises, presenting a truly global view that avoids both oversimplification and ideology. Most valuable of all, Authers offers realistic solutions: for decision-makers who want to prevent disaster, and investors who want to survive it. From world-renowned leaders and experts, including Dr. Mark Zandi, Satyajit Das, and John Authers
Author: Jim Randel Publisher: RAND Media Co ISBN: 098189352X Category : Financial crises Languages : en Pages : 87
Book Description
The Skinny on the Housing Crisis is an in-depth look into how America dragged itself into the worst housing and credit crisis since The Great Depression. The story is told through the experience of a young couple, Billy and Beth, who in 2006 buy their first house. Two years later, they lose their house to foreclosure.
Author: Gallent, Nick Publisher: Policy Press ISBN: 1447346084 Category : Social Science Languages : en Pages : 192
Book Description
At the root of the housing crisis is the problematic relationship that individuals and economies share with residential property. Housing’s social purpose, as home, is too often relegated behind its economic function, as asset, able to offer a hedge against weakening pensions or source of investment and equity release for individuals, or guarantee rising public revenues, sustain consumer confidence and provide evidence of ‘growth’ for economies. The refunctioning of housing in the twentieth century is a cause of great social inequality, as housing becomes a place to park and extract wealth and as governments do all they can to keep house prices on an upward track.
Author: Nina Liao
Author: Nina Liao
Author: Robert M. Hardaway
Author: Eric A. Posner
Author: Franklin Allen
Author: Reed Hundt
Author: Richard J. Durbin
Author: Mark Zandi
Author: Institute for Policy Studies
Author: Jim Randel
Author: Gallent, Nick