Some Doubtful of U.S. Mortgage Deal with Banks
Thursday, February 9, 2012
San Diego Union-Tribune -- Major news outlets reported Wednesday night that two key states, California and New York, are set to sign onto a historic mortgage settlement with the country's biggest banks over foreclosure abuses. U.S. and state officials are expected to make announcements Thursday morning.
Two California real estate thinkers who heard the news that night say they're doubtful of the agreement's potential impact on homeowners.
...Mark Riedy, director of the real estate center at the University of San Diego, said the unprecedented deal between states and major lenders will further throw the U.S. economy off track.
“Part of me says it’s good to put it behind you. It’s an issue that began in 2005, 2006, 2007," Riedy said. "It will add another till to the mortgage market. It will make everyone more conservative in a time when we need to help the economy. This isn’t a good thing, anytime. At the same time, a lot of people were hurt during the process."
“The only good thing is: Let’s get it behind us," Riedy said. "I think California will have more leverage than the other states, so Californians may do better financially than everybody else…But it's way too late." (Full Story)