Real Estate & Property Law
Pay Servicers, Enact Safe Harbor Law to Stop Foreclosures, Columbia Profs Say
Posted Jan 8, 2009, 02:15 pm CDT
By Martha Neil
There are two primary steps that the feds should take to help end the mortgage foreclosure crisis, Columbia University law and business professors say in a written report (PDF) released yesterday.
First, the government should pay financial institutions to modify mortgages, to give servicers a financial incentive to work with troubled borrowers. Second, Congress should enact a "safe harbor" law protecting lenders who modify mortgage terms from potential litigation by investors who have purchased the loans, reports Reuters.
"We estimate that our plan will prevent nearly one million foreclosures over three years, at a cost of no more than $10.7 billion. It also raises no constitutional concerns, because it builds on well-established Supreme Court case law," the profs write.
The article is authored by Christopher Mayer and Tomasz Piskorski of Columbia Business School and Edward Morrison of Columbia Law School.
Related Stories
- Sotomayor’s Nomination: Today’s News
Jul 2, 2009, 04:11 pm CDT - Counsel for Accused Lawyer Must Be Given Control of Claimed Child Porn
Jul 2, 2009, 03:52 pm CDT - Appeals Court Rules MySpace Not Liable for Teens’ Rapes
Jul 2, 2009, 11:38 am CDT - The Journal’s Sea Change
July 2009 Issue
Add Comment
We welcome your comments, but please adhere to our comment policy.