Last week, Berkeley Law Professor Prasad Krishnamurthy published an opinion piece in the Oakland Tribune advocating that the government use shared appreciation mortgages to aid underwater homeowners. Shared appreciation mortgages are those in which a portion of the principle of a loan is written off in exchange for a share of the equity if the price of the home increases. While this method is already in use in the private sector, Krishnamurthy argues that the government, through the FHFA, should implement a similar plan. The article lays out the details of how the mortgages could aid homeowners and address some potential criticisms. Check out the full article here.