While some prominent figures in the federal government, including Sen. Elizabeth Warren, D-Mass., and Rep. Mike Capuano, D-Mass, have loudly criticized the government’s practice of selling non-performing loans to private investors, a new report from the Urban Institute suggests that selling NPLs to the private sector is actually a good thing. The report, which comes from the Urban Institute’s Housing Finance Policy Center and is co-authored by HFPC Director Laurie Goodman and Center Creek Capital Group ‘s Dan Magder, shows that private investors “can do more for borrowers” than the government.
