The architect behind mortgage-backed securities Franklin Bank Chairman Lewis Ranieri told Holfstra University conference-goers that the federal government and private partners should remove 1 million homes from the housing market and turn them into lease-to-own rentals in order to turn the economy around.
He blamed the collapse of mortgage-backed securities on a breakdown of checks and balances and scoffed at the way the government is approaching the problem now.
“You can’t do restructuring loan by loan,” he says.
Ranieri, a former chairman at now-defunct Salomon Brothers, supports changes in bankruptcy laws to allow judges to reset loans.
Source: Investment News Daily, Andrew Coen (12/01/08)
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