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In a speech to a banking group in Florida, Federal Reserve Chairman Ben Bernanke said foreclosures and late payments on mortgages are likely to continue rising "for a while longer."
He said the current banking industry-backed plan that has seen some lenders lowering interest rates or working out payment plans is a "step in the right direction."
Bernanke says it is in lenders' interest to do more to avoid the huge cost of foreclosures. He says it is good for communities and the nation's economy to offer more help to more homeowners.
Recent declines in home values have made it difficult for troubled homeowners to solve their problems by refinancing or selling their properties.
Source: By VOA News
Posted March 4th, 2008 by seher
US Mortgage Crisis
The government is trying to pull out all the stops to avoid a major crisis that is leading towards recession. The only way to fix this problem is to let it run its course and hang on for the ride.
The is no easy fix to the mortgage crisis.