Last night I interviewed Bruce Marks, CEO of the Neighborhood Assistance Corporation of America (NACA) about his plans to work with Countrywide to help distressed homeowners restructure their mortgages and keep a roof over their heads.
I wish Bruce great success in his endeavor. I think what they’re doing with Countrywide is a great project.
All these various ideas circulating to help working Americans with steady incomes keep their homes, keep a roof over their family’s heads, and avoid foreclosure are in my opinion, terrific. It’s old-fashioned banking. I say let’s do it. It’s the American way. It’s the capitalist way. I wholeheartedly endorse all of it.
As my guest Jim LaCamp, portfolio manager at RBC Dain Rauscher said, “If it works better for [Countrywide] then great…The banks don’t want the houses, the borrowers do want the houses, and the investors don’t want complete default—they’d rather have something back than nothing. This is a better solution.”
LaCamp’s right. Our country is not helped if all these neighborhoods are wrecked because people couldn’t meet some payments. If they’re working people, and they have income, let’s try to help them work through this period.
Free market capitalism can be compassionate. Borrowers and lenders can both win here.