MHProNews has learned from NationalMortgageNews, former President Bill Clinton’s plan to resolve the housing crisis is for underwater borrowers to receive lowered principal and interest rates that match current valuations. Once the market recovers and the house is sold, the bank would get a portion of the sale. This would keep bad debts off the bank’s books. Speaking at the National Retail Federation’s Annual Convention and Expo, Clinton says our economic crisis has become an identity crisis: “It has gone to the core of people’s sense of who they are, what they are worth and how they get through life with meaning.” He says history tells us over the past 500 years it has taken five to ten years for a country to recover from a financial disaster; but crises related to privately-held mortgage debt have required closer to ten years to recover. “If you want America to return to a full-employment economy, you have to accelerate the resolution of the mortgage crisis,” he says.
