Treasury’s Paulson seeks broader mortgage help

November 23, 2007 at 12:26 am | Posted in economy, USA | Leave a comment
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WASHINGTON (Reuters) – Treasury Secretary Henry Paulson is pressing the U.S. mortgage industry to help large groups of borrowers automatically, worried lenders will be unable to staunch a worsening mortgage crisis if they try to fix loans one-by-one.

In an interview with the Wall Street Journal published on Wednesday, Paulson said he was “aggressively encouraging” the mortgage servicers to develop new criteria that would speed the qualification of certain borrowers for better terms more quickly as a crush of subprime mortgages reset next year. This is a shift from Paulson’s previous strategy of encouraging the industry to work on a case-by-case basis with troubled borrowers.

He told the newspaper he is expecting a wave of mortgage defaults next year.

This is a really bad sign indicating crush of subprime mortgages get gets worse before it becomes better.

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