Mitt Romney, Pain-Feeler

“If you look home prices over time, in America — 100 years of home values — and you take out inflation, home values have grown about 1 percent per year,” he said. “Starting about a decade ago, it started going dramatically up. That coincided with the efforts of Congress and Freddie and Fannie, saying: ‘We’re going to insure these homes.'” The maniacs, they blew it up. “The truth is the bad news is there, we realize it, we need to go back and start over again. We need to recognize these loans don’t have value, because the underlying property was massively overvalued.”

“Where there has been fraud, where people who entered into a mortgage arrangement were mislead by institutions or by individuals — why, there should be an effort to go after those institutions and prosecute them,” he said. “That’s something that Pam Bondi is doing here — the attorney general of Florida — and is hopefully being done in other states as well. Secondly, the banks ought to show greater flexibility in being able to renegotiate with those people who have circumstances that would justify that renegotiation. The banks seem to be paralyzed — I talk to bankers, community bankers and ask why are you not able to work through some of these problems? They say, in part, they’re frightened about what’s happening with Dodd-Frank, and taking actions that may put them in peril.”

Full article here…


Go team Bondi!