Caren Bohan and Corbett B. Daly
Oct 13, 2010
The Obama administration rejected calls for a nationwide moratorium on housing foreclosures amid fears that such a move could cripple an already slow recovery of the U.S. housing market.
White House spokesman Robert Gibbs signaled on Tuesday the administration’s wariness of backing populist calls to halt evictions. A moratorium would benefit only a small minority of homeowners while risking a backlash if it impeded the economy.
“There are a series of unintended consequences to a broader moratorium,” Gibbs told reporters.
Industry experts warn that a ban would add to lenders’ losses, raise the cost of new mortgages, and create a backlog of homes that would further depress real estate prices.
This article was posted: Wednesday, October 13, 2010 at 3:52 am