You heard it here first………..a CARP by any other name would smell as sweet.
On September 14, 2011, Dr. Christopher J Mayer presented to a US Senate Committee (attached below) a plan that was similar to the CARP notion I described a year earlier. The critical difference was that the Government would actively “encourage” private parties to remediate the issues of: 1) Reps and Warrants, 2) Second Liens, and 3) M.I. as opposed to allowing pure market incentives to dominate.
(Source credit for CARP and GSE Buy-Outs on page 10 of his statement)
A true public policy winner, it is troubling that it never gained traction.
hb
