Banks are still unwilling to modify loans, despite rules imposed by regulators and legal settlements after the housing bust that were supposed to make it easier and fairer for borrowers to obtain relief.
Editorial Board of New York Times
New York Times (NYT)
August 17, 2015
READ FULL EDITORIAL HERE
Tags: Housing: Foreclosure
The banks say they have broken no rules. But lawyers for borrowers, as well as a new report by the inspector general of the government’s main housing debt-relief program, indicate otherwise. In particular, it appears that banks are still able to make more money by delaying or denying modifications — and thereby earning more fees and interest — than by granting new loan terms.
The situation is evidence of the unrepaired damage from the bust. Aggressive intervention to provide debt relief and create good jobs is still needed, but has not been forthcoming. It is not too late for remedial steps, if only the political consensus to take them could be found.