WASHINGTON — CUNA Chief Economist Bill Hampel appeared on the Nov. 30 airing of Bloomberg television's Bloomberg on the Economy program.
Hampel and a representative from Credit Suisse took questions from program host Kathleen Hayes about the impact of the ongoing credit squeeze and efforts to help mitigate the damage to U.S. mortgage and home markets.
Hampel commented that the most recent plan from the U.S. Treasury to ease the pressure on some borrowers “sounds good” but that the “devil is in the details.”
The plan sounds really good but how do you define the borrowers into one of those categories, he asked.
The Treasury plan would divide subprime borrowers into three groups, those who can repay their loans even after their interest rates rise, those who cannot pay their mortgages even at the lower rate and those who can pay at the rate they currently have but would have trouble at the higher rate. The first two groups would not get any help but the last group would. Hampel expressed concern about how borrowers could be placed into the three tiers.
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