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Keith Hennessey
Keith Hennessey
Your guide to American economic policy
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The political risks of targeted mortgage subsidies

Yesterday the President announced an expansion of a program to help some homeowners who are underwater on their mortgages. The President announced his new policy in Nevada, one of the four “sand states” where the housing bubble grew biggest…


Subprime mortgages

In the Rose Garden last Friday, the President proposed policy changes to address problems in the subprime mortgage market. Here are his remarks and a fact sheet. I’m going to do this in three parts: (1) give a few definitions for those who are new to the housing finance world; (2) define the…