Yet Another Mortgage Settlement Gimmie: Conflicting Servicing Standards Play into Hands of Banks
It’s bad enough that the overhyped mortgage settlement was a big victory for the banks at the expense of homeowners and the rule of law. It let servicers out of considerable liability at very low real cost, and even that is offset by the transfer from pension funds and savers to the banks by letting them write down securitized first loans without wiping out bank owned second liens that sit behind them.
But we now learn there are other gimmies that appear to have resulted from negotiating incompetence.
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