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And For Some People, Refinancing Just Delays The Inevitable
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The Obama administration is taking a whack at the housing crisis with a plan that purports to make it easier for some people to get a mortgage. Looking at the proposal, I'm not sure that it really does the trick, because there are a lot of other reasons that banks don't want to give mortgages, like lack of income, and just making refinancing marginally more accessible isn't a big move. And there are worse problems keeping people from buying new homes in the first place, like concern that the economy is recovering and that values won't be going up. This plan isn't going to deal with that. It also doesn't do anything for home values, although the suggestion by some Democrats that there should be an across-the-board reduction in principal would probably crash home values to a crisis level. Not that we're not in a crisis already. (Los Angeles Times)
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