Marty Connor, chief financial officer at Toll Brothers, appearing Friday morning on CNBC, said the company proposes a splitting of underwater mortgage loans into two loans refinanced at a lower rate, one a primary mortgage covering up to 100% of the value of the property, the other a “soft second mortgage” that would be paid at a later date from equity or value appreciation.
Connor made the remarks in response to a question whether Toll supports mortgage cramdowns as a potential solution for those whose mortgages are higher than the current value of their homes.
Connor also said that now is an “awesome” time to buy a home given the current 60-year low in mortgage rates. He also acknowledged, however, that uncertainty over the direction of the economy and government policy is restraining the new-home sales market.
The interview in its entirety can be seen here on CNBC’s web site.
