Who better to tell us how to “get housing right” than the head of Wells Fargo Home Loans! Surely Mike Heid would have no conflicts of interest and would solely have the benefit of the homeowner in mind.
• In the short-term, I believe it is critical to end uncertainty about rights and responsibilities between market participants. Simultaneously, we need to work hard to find long-term bipartisan solutions to restructure the housing finance system in America.
• Washington did the right thing in setting up HARP – a national program that ensures all servicers know the rules in refinancing underwater loans. We need to give this program – and others – time to work. I would urge caution when considering whether additional housing programs are necessary at this time.
• Finally – and perhaps most importantly – regulators need to strike the appropriate balance between risk management on the one hand and giving more consumers a better chance to get loans on the other.
Let’s translate this, shall we: