Problems with Obama-era HAMP were that (1) as thinly-resourced, fast-moving payment processors, servicers were incapable of handling credit writedowns and (2) they profited when homeowners were in duress, lost money with writedowns.
PPP problems are different, maybe worse. (1/3)
PPP problems are different, maybe worse. (1/3)
Here we want (1) fast-and-wide movement, which invites fraud through loaning too much, which banks don& #39;t want to eat the liability of, (2) thin margins, the goal is to move cash far more than market-rate loans to small businesses, but the banks want margins to participate. (2/3)