Bernanke asks for homeowner mortgage relief

Vancouver News.Net
Thursday 4th December, 2008

Federal Reserve Chairman Ben Bernanke has said he wants more steps taken to halt home foreclosures.

At a Fed conference on housing and mortgage markets, Mr Bernanke said the foreclosure rate in the US remains too high, with undesirable consequences for both those directly involved and for the broader economy.

He said loan service providers might have to make mortgage modifications to write down loan principal so people can stay in their homes.

Bernanke painted a forbidding picture for some homeowners.

As many as 20 percent of borrowers owe more than their homes are worth, he said, with lenders preparing for 2.25 million foreclosures in 2008.

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