I'm curious on your thoughts on this section of the mortgage plan that Barney Frank is pushing:
Eligibility Requirements for Existing Loans (Requires All of the Following):
· To remove any incentive for borrowers to “purposely default,” the borrower must have had a mortgage debt-to-income ratio of no less that 35 percent as of March 1, 2008, and must certify that he/she has not intentionally defaulted on existing mortgage(s);
My question is regarding the "must certify that he/she has not intentionally defaulted". It seems like there is no explicit language that says that the borrower has to be behind on their mortgage; only meet the debt-to-income ratio. Any thoughts on how this will actually get implemented?
Also, any thoughts on whether llenders "voluntarily" comply?
All the best,