Government Assisted ReFinance
You heard it here first......…..a CARP by any other name would smell as sweet.
Presented by Dr. Christopher J Mayer to a US Senate Committee on September 14, 2011 (attached below), this plan is similar to the CARP notion I described last year. The critical difference is that the Government actively "encourages" private parties to remediate the issues of: 1) Reps and Warrants, 2) Second Liens, and 3) M.I. as opposed to allowing pure market incentives to dominate.
(Source credit for CARP and GSE Buy-Outs on page 10 and attached below)
A true public policy winner, we can only hope it gains traction this time.
If this plan is implemented, the Rates world would soon tremble.