Wednesday, February 22, 2012
Mortgage Deal: A drop in the bucket, false hope!
Joe: see some key paragraphs from this article below regarding the mortgage settlement. I highlighted the key points on the deal.
1. A drop in the bucket
– only 25,000 homeowners helped New York State
3. Precedent – the government forcing banks to lower principal
4. False hope – true…
Regarding #3, in the Joe Nocera article (link below) he wrote; "For those who mainly care about seeing the banks punished, there will be other opportunities. The litigation relief the banks won is surprisingly narrow. States and the federal government will still be able to sue for lots of other abuses, including lying about the quality of mortgages that were bundled in toxic mortgage-backed securities."
Seems to me, this was the time to make the deal has passed. Since Timothy Geithner was, "convinced the program wouldn't be overhyped or overly punitive". -Bob
HUD boss Shaun Donovan jumps into President Obama mortgage melee | 2/21/12 11:35 PM ESTIn early February, five major banks, led by Bank of America and JPMorgan Chase, inked a settlement with 49 states that would force the banks to pay $5 billion in cash relief for faulty and sometimes fraudulent documentation of mortgages that cost underwater homeowners untold billions.