Quote:
Originally Posted by LOCOChief
Its fed regulation that prevents banks from selling or dumping distressed REO's on the market.
As far as housing is concerned it really isn't the banks that caused this mess.
It was the "salability standards" established by Fannie / Freddie that Barney Frank and Chris Dodd said not to question back in 2004 I believe.
They gave consumers the rope to hang themselves with.
Your idea could work, but you don't want local community banks shouldering this because they didn't create it. The current administration is trying to kill the local banker and back his dog in the hunt which is any institution that took TARP. Just like GM.
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I don't disagree with any of this other than the implication that the local banks would be harmed. They don't hold so many properties that they are unable to manage them. A year should be. Ample time for them to determine what needs to be done.