It seems as though our policy makers are beginning to understand the American economy cannot be improved merely by top down policy measures. The recent stimulus packages are reminiscent of “Reaganesque” trickle down economic strategies that have most certainly benefitted high level executives achieve bonuses, but fail miserably to have real world, positive consequences for the average citizen at the bottom.
James B. Lockhart III, Director of the Federal Housing Finance Board, recently remarked “The ASF has taken too long” in regards to the agency’s efforts to address loan modification issues with investors.”
Lockart spoke at the American Securitization Forum’s annual industry conference on Monday. He also said that he was glad to see that the industry is making progress in standardizing loan modifications for borrowers whose mortgage have become unaffordable.
We at LoanWorkout.org couldn’t agree more with Lockhart.
Lockhart advocates a “streamlined loan modification process” modeled after the FDIC’s Loan Modification program that gained fame at failed mortgage giant Indymac. 
The Federal Housing Finance Agency oversees the GSEs of Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
FHFA took conservatorship of Fannie Mae and Freddie Mac last September. Since then, Lockhart says they have been working proactively to help homeowners avoid foreclosure sending approximately 60,000 letters to homeowners offering a loan modification.
“Without conservatorship it would have accelerated the downward spiral in the market,” Lockhart stated.
Let’s hope that the tide of trickledown, voodoo economics subsides and in its place, government officials like Lockhart begin to implement strategies that will solve problems from the bottom up.
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