An interesting idea comes to the surface from the “Mandelman Matters” blog, in a posting by Attorney John Deal: Make more mortgages assumable

Deal suggests that this freeing up of existing mortgages to be assumed so new buyers can enter the market could open up the floodgates and add possibly trillions of dollars of liquidity to the housing market almost immediately. Essentially, it’s recycling for mortgages. One legislative change that would have to take place is to amend an old piece of legislation called the Garn-St. Germain Act, which would result in the suspension of enforcement of due-on-sale clauses in residential mortgages.

Deal suggests that relaxing this enforcement of due-on-sale clauses apply not only where buyers are buying homes they