Foreclosure policy should focus on unemployed
Foreclosure-reduction policy should focus on helping people who lose their jobs, new research from the Atlanta Federal Reserve suggests.
The research shows that what really matters in the decision to default is the size of the mortgage payment relative to the borrower's income in the present and in the future. The paper also shows that the benefits of loan modifications are uncertain to lenders if borrowers have lost their jobs.
The paper posits that the government could replace a portion of lost
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