Plan to mandate modification review before foreclosure more PR than help

New proposal won't help foreclosures
New proposal won't help foreclosures

The Obama administration is reportedly considering a plan that would prohibit lending institutions from foreclosing on a home before a mortgage loan modification is given consideration. This is the sort of thing that may sound good on paper (especially after "draft proposals" were obviously leaked to news media) but, upon closer inspection, I'm afraid, smells of nothing more than spin.

In that, I concur with Laurie Goodman, the senior managing director at the Amherst Securities Group who told the New York Times, " We think there is a large public relations element to this." She correctly points out that such a policy probably would have very little real-world effect.