Have You Heard? Mortgage Forgiveness May Be Coming. There is an article on Reuters today that covers the basics. The thing I find interesting is the veiled way that the financial companies are describing it. Three companies are quoted in the article, found here. In each of the quotes, what is implied but not stated, is that they are anticipating governmental action to cause mortgages to be "forgiven" up to a point.
The forgiveness would not be for complete mortgages, but for a portion of the principle, especially that amount that has the property "upside down." If that happens, investors in mortgage backed securities would experience losses that would have to be written off, absorbed, or ?
It is going to be an interesting fall.