Mark from Reston

Why Mortgage Modifications Have Failed

Would like to hear more about your conversations with the banking regulators. Like why didn't they see the problems with the pay option ARMs mortgages out of BankUnited, Downey, WaMu, IndyMac and Golden West (Wachovia) until all of these institutions failed. When all of these institutions' originations were almost 100% pay option ARMs as early as 2005 and 2006, didn't the regulators think that there could be a problem down the road or at least see what this type of mortgage was doing to home and condo prices in California, Las Vegas and Miami? How crazy was it to let someone finance 125% of the purchase price of a house and then not expect all these mortgages to blow up and take the banks and the housing market with them.