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Big Banks in Trouble: Huge Mortgage Write-Downs Seem Inevitable

Most people don't even know what the "current" value of their house is. ]

Maybe not... while they're current. But they take a KEEN interest in how much they owe once they do fall behind on payments. Don't think for a minute that people aren't doing the math to see if the LTV is within their tolerance level.

Many borrowers were stupid enough to take the loan they were given. But they're not stupid enough to keep it.

The Hole in the New Property Appraisal Rules

[If the whole idea is to get the appraisal system out of the banking/lending system]

The whole idea is to CREATE THE APPEARANCE of getting the appraisal system out of the banking/lending system.

The Trouble with Rescues and Stimulus

[how can we ”rescue” and “stimulate” the economy without encouraging the “living beyond our means” mentality that is so harmful to the longer-term health of our economy?]

We can't- those two objectives are mutually exclusive.

Criticizing the banks for not immediately lending the money seems crazy to me.

Did they inject this capital to improve the health of the institutions? If so, then they should be allowed to decide how best to do that.

Taking that money and immediately loaning it just because they were scolded would later be seen as irresponsible. Then the legislators would have to castigate the banking industry for "making the problem worse."

You can't win when you have ignorant people deciding how we're going to "fix" the problem with government money.

Prime Foreclosures Now Greater Than Subprime

[Putting the question another way, are "prime" borrowers eligible for the same protections and work-outs that have been created specifically for the sub-prime sector?]

Aside from the FHA Secure program, which was specifically designed to get people out of their ARM's, most of the changes in the industry have been product-neutral.

It doesn't matter what type of loan you have.

New Lender Guidelines To Help Struggling Homeowners

[and would in most cases receive a final decision on whether they will receive help with their loan within 45 days.]

They're already far, far, very, very far short of this standard.

This new plan appears to be a combination of "nothing new" and promises that can't be kept.

They say that they'll "consider" things... such as principal reduction... when the recent Boston Fed paper clearly states that such a consideration makes no sense.

I love how these announcements really say nothing at all.