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Banks Can Fix Crisis by Easing U.S. Homeowner Debt, Ranieri Says

U.S. lenders can assist millions of owners who are underwater or in default by offering short-term leases on their homes, said Lewis Ranieri, the pioneer of mortgage securitization.

“There are unfortunately millions of lower- and middle-class people who reached for the American dream and were coached into how to buy a house,” Ranieri said yesterday during a panel discussion at the Milken Institute Global Conference in Beverly Hills, California. Borrowers whose property values have fallen below the amount owed “should get help,” he said.