A strong case can be made that the fundamental supports of the housing market– demographics, employment, creditworthiness and income–will not recover for a generation. It can even be argued that housing has lost its status as the foundation of middle class wealth, not for a generation, but for the long term.
How many borrowers who are current on their loans will be encouraged to either claim hardship or go delinquent to obtain principal forgiveness? This is a particular concern for the Enterprises because they cannot pick and choose where forgiveness makes sense, they must develop a program that can be implemented by one thousand servicers and sellers. The Enterprises would also have to publicly announce the availability of the program
“We have several opportunities to build the production stages in communities that see us as a creative asset, not as an evil empire, and if we are to stay on schedule we must act on those opportunities,” Lucasfilm said it a statement headlined, “Lucasfilm pulls building plans out of Marin.”