Some institutions already offer a so-called fresh start or cash-for-keys program, in which they provide a small payment to consumers in exchange for voluntarily surrendering the deed to the home. Such arrangements reduce the cost of foreclosure and provide consumers with relocation assistance. Other lenders are offering borrowers the option to remain in their home as renters rather than owners.
As for the divergent growth prospects in the US and China, we could be affected via the trade channel. If US growth will continue and gain further traction, this could mitigate the impact of a slowdown in China. Furthermore, our domestic financial markets have not been spared from the market volatility that these external developments have stirred.