From the Washington Times
Housing prices are in free fall. No bottom is in sight as President Obama's policies continue to undermine the market.
The S&P/Case-Shiller U.S. National Home Price Index posted a 19.1 percent drop for the first quarter of 2009 compared to last year. The rate of decline is getting worse. The first quarter of this year showed the biggest quarterly decline in the index's 21-year history. Government meddling will drive down prices even further.
Last week, President Obama signed into law the Helping Families Save their Homes Act of 2009. Now mortgage collectors can break existing contracts with companies that lent money for mortgages. This new law grants "mortgage servicers," often banks, legal immunity from lawsuits for breaching these existing contracts. This comes on top of regulations in March that tell lenders they must pay mortgage servicers a fixed amount for renegotiating the amount each borrower has to repay. These renegotiations involve forgiving borrowers for some of the debt that they owe. Mortgage servicers will get paid simply on the basis of doing another renegotiation, whether or not it is done in the interests of the lenders. . . .
Labels: Economy, Regulation, Washingtontimes