Proud of Governor Patterson’s stand in the WSJ:
New York is both the epicenter and chief victim of the current financial cataclysm. That is why I strongly support immediate federal action to stabilize the financial markets, but also insist on simple yet critical changes that will not hinder instant action.
. . . .
The bailout’s structure must be altered. While the credit markets must be reassured, homeowners must also receive help to avoid unnecessary foreclosures. The Center for Responsible Lending projects 6.5 million foreclosures in the next several years. This will cause a $356 billion decline in surrounding property values for the 46 million families that live next to foreclosed homes.
Therefore, once the Treasury purchases distressed financial real-estate assets, I strongly urge the government to require mass modifications to owner-occupied home loans.
