Will mortgage modification plan work?

Last week, CNBC looked at whether a new proposal to give judges the power to rewrite mortgages will help to resolve the housing crisis. Yale economics professor John Geanakoplos and CNBC’s Diana Olick discussed that proposal and the way mortgage modifications are handled. Olick said that the system is too overloaded already for the new plan to have much effect, and Geanakoplos said the government needs to hire bankers to make decisions about mortgage servicing.