Sheila Bair, the head of the FDIC, says that government response to the banking crisis has ignored help for homeowners. We've injected money into the banks, we've drawn up plans and passed laws, and we've lowered interest rates. However, homeowners are still struggling to pay the mortgage.
Bair notes that some people were greedy when they got into high-risk mortgages, but some were also just needy. There's no way to tell the difference who's who, and she suggests that helping homeowners is in everybody's best interest.
Some mortgage help has already come in the form of HOPE for Homeowners, a program that helps make payments more affordable. In addition, Bank of America gave mortgage help to former Countrywide customers. IndyMac customers have also seen relief.
Lawmakers and academics continue to debate if mortgage help will help, and what form it should take.
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