FAQ #12a: Doesn’t Dean Baker’s “Own-to-Rent” proposal have some similarity to your SwapRent (SM) plan?
I have had email exchanges with Dean Baker since August 29th, 2007. He is quite familiar with the details of our SwapRent (SM) and its embedded mortgage product HELM as well as their economic benefits to help homeowners. Back then he said that he did not think a new financial instrument or contract that we had been proposing is necessary. Now he is proposing to modify the foreclosure rules, basically creating a new type of mortgage contract. The “fair market rent” is almost referring to the similar concept of the SwapRent (SM) rates in each neighborhood or in each city. This could create the need of a new type of rental contract that mimics part of what a SwapRent (SM) contract was already created to do.
I was pleasantly surprised to find out how similar to the SwapRent (SM) plan that his plan has evolved to be by now. As usual, people need time to learn, digest and appreciate new things. I am glad that he is seeing now the economic benefits what SwapRent (SM) could offer as he is a very well known, out-spoken and respected economist. If we could get his open support and endorsement it would be a true honor for us. Hopefully we could cooperate together and fine tune our plans to bring the urgently needed benefits to the homeowners.