Housing bailout a “colossal failure”?: VIDEO

Avison Young's Jason Meister says propping up of the market has done more harm than good

The housing bailout is a mismanaged program that has resulted in greater foreclosure rates and increased uncertainty among lenders, according to Avison Young broker Jason Meister and Greg Rand, CEO of the real estate investment network OwnAmerica.

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“It’s been a colossal failure,” Meister said of the Obama administration’s home affordable modification program, speaking yesterday on Fox Business. By forcing banks to modify loans and lower monthly mortgage payments, the government “artificially propped up” the market, a condition that is not sustainable and in reality has led to more foreclosures, Meister added.

Rand said that because of the modification program, “the lending industry does not know when the next shoe is going to drop.” The government, Rand said, had “harassed” the banks, which were now confused about how to underwrite loans. [Fox Business]  – Hiten Samtani