Paulson Shifts on Mortgages

Discussion in 'Wall St. News' started by ASusilovic, Nov 21, 2007.

  1. WASHINGTON -- U.S. Treasury Secretary Henry Paulson, concerned that millions of homeowners aren't being helped quickly enough, is pressing the mortgage-service industry to help broad swaths of borrowers qualify for better loans instead of dealing with mortgage problems on a case-by-case basis.

    In an interview, Mr. Paulson said the number of potential home-loan defaults "will be significantly bigger" in 2008 than in 2007. He said he is "aggressively encouraging" the mortgage-service industry -- which collects loan payments from borrowers -- to develop criteria that would enable large groups of borrowers who might default on their payments to qualify for loans with better terms.

    That's a shift from his previous view that the problems didn't warrant a group approach. Mr. Paulson said his outlook has evolved as he has learned more about the problem.

    "We're never going to be able to process the number of workouts and modifications that are going to be necessary doing it just sort of one-off," Mr. Paulson said. "I've talked to enough people now to know there's no way that's going to work."

    Hum...subprime is contained....don´t name is Paulson...EX Goldman Sachs Paulson...:p