In today’s Wall Stret Journal: Meet Howie Hubler, today’s expert at saving homes, but formerly a moronic trader who managed to lose 9 billion dollars on mortgage bonds.
His brilliant idea? Pay homeowners a few dollars to stay current on their loans. Apparently, the morons at the hedge funds think this brilliant plan will work. Here is the problem, if you believe in the free market, then the homeowners should realize this is a bad deal for them. If not, then it is just another mortgage rescue scam.
So what should these loan investors do? Admit their losses and move on. Until they do, they will be dealing only with fools like Howie Hubler in their attempts to scam homeowners into making poor economic choices that they would never make themselves.
Also, it would appear that the “loan value group” violates New Jersey’s debt adjuster statute.