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Straight Story: Look across the board
Economics editor Chris Farrell
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To Michael Casey - that sound like a bankruptcy code that puts the lender's skin in the game again, so that they will go back to assessing carefully if the borrower can pay and require a down payment to assure an equity cushion. They'd be much less likely to do loans with interest rates that hike during the course of the loan or require balloon payments. Hmmm - I think those are good things.
Question for Mr. Farrell: If the bankruptcy code is changed as per his suggestion, how difficult is it going to be for one to get a mortgage in the future if the lender knows that as soon as things start to go south for this borrower, the lender is at risk of having the mortgage contract rewritten by a bankruptcy court?
