IndyMac Veterans Make Credit Push
Los Angeles Business Journal
By Richard Clough
...According to a confidential 45-page draft provided to the Business Journal, the program would speed up the credit rehabilitation process by providing credit counseling, credit rescoring and related services to otherwise responsible borrowers who were foreclosed upon because they lost their jobs, were unable to qualify for a loan modification or were defrauded by mortgage-related scams...
...Already, the proposal is raising eyebrows among critics who question whether it would lead to the same problems that got lenders in trouble during the housing crisis.
"Is there worry that from the lender perspective, they might go back to the way they were before? Yeah," said Richard Green, director of the USC Lusk Center for Real Estate.
He said if the program is implemented intelligently and carefully, it could spur a quicker recovery in the housing market, but overzealous lenders could push too far.
"This is what happened the last time around," he said. "Competition was driving the market in a really unsustainable way."...