NEW YORK ( TheStreet) --The Federal Housing Finance Agency's lawsuits seeking $196 billion in mortgage-backed securities putbacks from 17 banks could end any hope for President Obama to broker a quick global settlement of the mortgage mess between the states, the federal regulators and the banks.
And that will prevent a bottoming of the housing market, thus delaying an eventual start to a housing recovery. Meanwhile any plans for the large banks to increase their lending, or offer significant balance reductions to spur mortgage loan refinancing at low rates, are also likely to be stifled.
This leaves the president with little hope for any positive economic news in time for the November 2012 election.
|President Barack Obama|
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