January 25, 2012

Is Refinancing the Best Way to Fix the Housing Market?

Introduction

Getty Images A house for sale in San Rafael, Calif. Obama said Tuesday that borrowers “shouldn’t have to sit and wait for the housing market to hit bottom.”

In his State of the Union address, President Obama announced the creation of a joint federal-state unit to investigate mortgage abuses and outlined a proposal to reduce the monthly payments of homeowners whose mortgage debts exceed the value of their homes. There are, of course, many ideas like this and others for mortgage relief, but which are the most promising to restore the housing market and revive the economy?

Read the Discussion »

Debaters

Stop Rewarding Irresponsiblity

Steven Greenhut, Franklin Center for Government and Public Integrity

If we let the market hit bottom, we'd have far less less waiting without policies that delay the inevitable.
Investigate the Banks

Simon Johnson, economist

But banks also need to to strengthen their balance sheets ahead of likely mortgage principal reductions that lie ahead.
Current Programs Aren’t Working

Kristiane Chappell, fighting a foreclosure

Here are three changes that would help those of us facing foreclosure.
Government Should Do Little

Tyler Cowen, economist

Not every problem can be fixed by further government tinkering.
The Cram-Down Proposal

Kathleen C. Engel, co-author, "The Subprime Virus"

Of course, some homes just need to be torn down, and some people need to be sanctioned.
Accountability and Fairness

Rashad Robinson, executive director, ColorOfChange.org

The housing crisis has hit black people and communities of color particularly hard.