To be fair to the main lenders, all of the strategies generally acknowledged the need to address the unsustainable mortgage group and to develop loan modification techniques. But our feedback is that this work needs to be accelerated. The Keane report provides the high level menu of loan modification options and we are encouraging the principal lenders to develop their own modification techniques.
Some of these, designed mainly for lower income households, involve the use of public money. An example would be Keane’s “mortgage to rent” scheme. It may well prove infeasible to apply such approaches on a large scale. Of wider application, I suspect would be some form of what the Keane group called “split mortgage” and/or “shared equity” a similar concept.