Housing

Lender With an Unusual Offer: A Second Chance – NY Times

To qualify for the program, the homeowner must have experienced hardship, like job loss or illness, and must demonstrate the ability to make the new payment. In Ms. Zaparesky’s case, her boyfriend, who is now living in the house, signed on to help. The homeowner also makes a $5,000 down payment. If the house is later sold at a profit, Boston Community is entitled to half the proceeds.

BofA Tests an Option to Foreclosure – WSJ

Bank of America Corp. is launching a pilot program that will allow homeowners at risk of foreclosure to hand over deeds to their houses and sign leases that will let them rent the houses back from the bank at a market rate.

Bank of America Launches Test “Mortgage to Lease” Program – Should We Be Impressed? - Yves Smith

Home Sales: Distressing Gap - CR

Michigan Man Sentenced to Seven-Plus Years for First-Time Homebuyer Tax Credit Fraud – NMP

For the tax year 2008 alone, Proe filed more than 50 fraudulent tax returns and obtained $500,000-plus in tax refunds, which were directed to bank accounts which he controlled.

Economy

Student-Loan Debt Reaches Record $1 Trillion, Report Says – Bloomberg

The higher education bubble – Mathbabe

More generally, the existence and price of college itself is a perfect trap for students. It’s been a growing assumption in the past few decades that one needs a college education to get a good job, and certainly in a poor job market like the one right now that is certainly true. And yet, the student debt load is increasing faster than the opportunities higher education provides.

Gangster Banks Keep Winning Public Business. Why? – Matt Tiabbi

If you read through these bid-rigging lawsuits/settlements, you’ll find a striking commonality in the evidence collected by these states and municipalities. All across the country, the same banks use the same code words with the same bidding agents to win business with artificially lowered bids.

How banks win big from Obama’s new refinancing program – WonkBlog

Misc.

As Young Lose Interest in Cars, G.M. Turns to MTV for Help – NY Times

“They think of a car as a giant bummer,” said Mr. Martin. “Think about your dashboard. It’s filled with nothing but bad news.”

There is data to support Mr. Martin’s observations. In 2008, 46.3 percent of potential drivers 19 years old and younger had drivers’ licenses, compared with 64.4 percent in 1998, according to the Federal Highway Administration, and drivers ages 21 to 30 drove 12 percent fewer miles in 2009 than they did in 1995.