{"id":199121,"date":"2007-09-05T23:04:00","date_gmt":"2007-09-06T04:04:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/09\/05\/a-sensible-fix-for-the-mortgage-mess\/"},"modified":"2007-09-05T23:04:00","modified_gmt":"2007-09-06T04:04:00","slug":"a-sensible-fix-for-the-mortgage-mess","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/09\/05\/a-sensible-fix-for-the-mortgage-mess\/","title":{"rendered":"A Sensible Fix for the Mortgage Mess"},"content":{"rendered":"<p>David Laibson has a good start, <a href=\"http:\/\/time-blog.com\/curious_capitalist\/2007\/08\/the_david_laibson_plan_for_end.html?xid=rss-curious\"> outlawing the prepayment penalty<\/a>.<\/p>\n<p>The prepayment penalty allows for &#8220;loss leader&#8221; loans, because it it offers an incentive to provide &#8220;loss leader&#8221; loans, because it makes it prohibitively expensive to get out of those abusive loans.<\/p>\n<p>I would add outlawing, or severely limiting, points, which provide a similar incentive.<\/p>\n<p>Congress could do this tomorrow, and it would help a lot of people now and in the future, while not bailing out bad actor lenders.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>David Laibson has a good start, outlawing the prepayment penalty. The prepayment penalty allows for &#8220;loss leader&#8221; loans, because it it offers an incentive to provide &#8220;loss leader&#8221; loans, because it makes it prohibitively expensive to get out of those abusive loans. I would add outlawing, or severely limiting, points, which provide a similar incentive. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973,1265],"tags":[],"class_list":["post-199121","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy","category-housing-crash"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199121"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=199121"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199121\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=199121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=199121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=199121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}