Before we applaud the federal government’s intention to intervene in the mortgage markets – I don’t mean the bailout plan but the reported idea of allowing judges to intervene between borrower’s and their mortgage lenders – read the Success Seen in Program to Save Homes about Philadelphia’s local plan to help homeowners.
In almost every case, local government is better suited to underwrite these missions than the federal government. In fact, some members of Congress have asked Secretary of the Treasury, Hank Paulson, to adopt such a plan nationwide. More of the federal government’s hapless regulation we don’t need.