CRL Responds to Sec. Geithner's "Financial Stability" Plan
In this statement, the Center for Responsible Lending (CRL) emphasized the need to stabilize the housing market and prevent foreclosures in order to stabilize the larger economy.
The administration’s forthcoming plan to address the foreclosure crisis must:
- Allow judicial modification of home loans
- Incentivize the industry to modify more of the unaffordable loans it made
- Take direct action to break the obstacles preventing home loan modifications, and
- Use $100 billion of the Troubled Asset Relief Program (TARP) funds, rather than $50 as proposed in the “Financial Stability” plan, to prevent foreclosures.