Count the WSJ as skeptical. It writes: “Rarely have so many politicians cashed in so blatantly on so little wrong-doing. In 2010, a group of AGs led by Iowa’s Tom Miller spotted political gold in reports that some bank employees had approved legal documents without proper review. They quickly spun this into the fairy tale that evil banks…”
I’ve yet to hear of a documented case where a homeowner who was making his mortgage payments on time was kicked out of his home by evil bankers.
Once again politicians are taking money from shareholders and handing it to people who were irresponsible in their financial choices aka late on their mortgage payments.
About 11 million homes are underwater a total of about $700 billion. So this $25 billion transfer payment will be a drop in the bucket of this particular problem.
It won’t be a drop in the bucket for the big banks whose stocks will continue to take a beating.
Big government is now more deeply immersed in the housing market on its way to an apparent goal of guaranteeing everybody’s mortgage.
I guess it is now a human right, like a college education and vacation and medical care.
This latest news is another government attempt to keep people in homes they can’t afford. Politicized lending caused the housing crash. Now we have more of it. We have politicized settlements that will create another housing crisis because of more politicized lending, says the WSJ.
If you reward people who aren’t making their mortgage payments, won’t you encourage more people to be late on their mortgage payments?
Somebody has to take a loss for this largesse. They will be investors and stockholders.
By stalling foreclosures, this will only extend the housing crisis.
How do we get out of this housing mess? We have to speed foreclosures. We will never see a recovery until the market clears and we get rid of this oversupply of housing. We need consequences for people who make bad decisions.
The Obama administration wants to make housing a right just like healthcare and college education.
This settlement is a big slush fund for Democrats to distribute in an attempt to buy votes.
Government is going to pick who gets these funds.
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