Investor Group Offers Principal Reduction Proposal As Alternative to Mortgage Cramdown Legislation
February 12, 2010
As foreclosures continue to mount and loan modifications produce mixed results, the Mortgage Investors Coalition has offered a second-lien principal reduction, loss-sharing proposal to help remove what is increasingly seen as the primary obstacle to successful loan mods for underwater borrowers: the second mortgage. Under the MIC plan, losses due to principal reduction on such loans would be...