Half of Modified Mortgages Back in Default

The Capitol Hill/auto makers story will be in the A section of the papers, so we say the one piece you might miss buried in the business section today is from the Associated Press in the LA Times which reports that, "More than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again." You need to give this story a quick read.

Here's why you care: The question is why? Are they now behind on their credit cards too? Is it simply untenable? Is it due to job loss? Those are the questions. You should read this story, because the Federal Reserve can lower rates again, but eventually that gets to zero and then what? The "what" has to be a multi-front approach, but the exact mix will be the source of the debate. Helping homeowners has been a top agenda item for many on Capitol Hill and elsewhere, and this report will give them pause to consider how to get it right. They'll be reading this piece and you should be too.