Glenn Hubbard: Geithner Blocked Mortgage Refinancing

Glenn Hubbard: “I saw some of the excerpts about housing [in Geithner's Stress Test]…

and I must say I split my side in laughter because Tim Geithner personally and actively opposed mortgage refinancing, constantly. And now he’s claiming this would have been a great idea in the country. I don’t know how much more ingenuous that is in the book, but that was just a real laugher.”

I am with Glenn Hubbard on this. Periodically starting in 2008, I would ask people at the Treasury: “Why are we not offering every household in America a conforming-rate ReFi with equity kickers attached for those that breach the 80% loan-to-current-market-value ratio?” And I never got what I could regard as a reasonable answer. It would have done a lot of good. It would still do a lot of good now…