As long as uncertainty exists as to the scope and terms of the additional steps that likely will be offered, borrowers, lenders, and servicers will continue to hold out in hope of securing a better deal. In this case, the cost of delay could easily outweigh the differences in outcome between the proposals.
For these reasons, I am pleased that the Administration is moving ahead on this front. 4  See, for example, Chris Foote, Jeff Fuhrer, Eileen Mauskopf, and Paul Willen (2009), "A Proposal to Help Distressed Homeowners: A Government Payment-Sharing Plan," Federal Reserve Bank of Boston (January 15).