Frank also called for principal reductions as part of any foreclosure-mitigation effort, telling reporters that they would be an essential part of any federal plan.“The more the better,” Frank said.
“Principal reduction is a big part of it. When you reduce the principal, you give people an incentive not to re-default, that’s why I think that’s important.”
He also said that Congress will wait for the Obama administration to be sworn in before embarking on any legislation forcing loan renegotiations
This is a new economic fact, folks. "Incentive" by elimination of debt?
Does that apply to General Motors, FoMoCo, and Chrysler?
While we're on the topic, BozoBarney:
...the Comptroller of the Currency John C. Dugan noted this morning that re-defaults rates appear to be well in excess of 50% for recent mods, much higher than the hoped for 40%.
Yah, that worked real good, Bozo.