Global West Resources Launches Housing Asset Recovery Plan

Posted by Orb Staff on April 22, 2009 No Comments
Categories : Mortgage Servicing

West Resources Inc. (GWRC), soon to be known as We Save Homes Inc., reports that after having met with lawmakers in March to discuss its Housing Asset Recovery Plan (HARP), the company plans to return to Washington , D.C., for a second round of meetings. ‘The benchmark of success will be our plan's ability to keep Americans in their homes without burdening the government and future generations of Americans with the financial responsibility, reducing government's role from that of a creditor to that of a guarantor," states GWRC Chairman Andrew Kardish. The HARP uses the Obama plan as a model and applies a reverse engineering process. Starting from what the homeowner can afford on a monthly basis, the plan works by either incorporating a 4.25% interest rate, altering the principal or altering the duration of the loan to keep people in their homes. GWRC's proposed solution is based on price discovery, identifying the correct value of the loan by taking into consideration the loan amount, the amount the loan would drop to in a foreclosure situation and the amount these loans are being traded in tranches on Wall Street. The price discovery goes from 100% on the high side to 56%, all the way to 3% to 28% when considering the value Wall Street places on it. The HARP plan allows the servicing bank to move these toxic assets into discounted assets. The servicing bank can then participate in the upside of the home's value when the market starts to rebound. SOURC

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