http://www.reuters.com/subjects/housing-market
While surfing the internet today for my new blog post I came across the web page above on Reuters. I thought it was great because it compiles tons of news articles relevant to the housing market.
This article caught my attention, it is a little lengthy but a good read none the less. The article talks about a decree that "Call[s] for stricter rules for handling mortgage documentation, better procedures for dealing with homeowners, internal investigations, and restitution to some homeowners if evidence shows that foreclosures were carried out in error." Unfortunately, all the major banks seem to be dragging their feet and prolonging such negotiations.
Thoughts?
"The banks won in heading off, for now, more stringent and costly steps proposed by consumer groups, state attorneys general and some other federal agencies."
ReplyDeleteI'm not surprised that the banks are resistant to this legislation. They are a business like any other trying to maximize their profits. It is just unfortunate that all too often businesses prioritize making money over social responsibility.
"The U.S. Trustees Office, an arm of the Justice Department that oversees the integrity of the bankruptcy courts, has launched actions in bankruptcy courts around the country alleging that representatives of the banks committed fraud on the courts by knowingly submitting forged and fraudulent documents."
ReplyDeleteThis quote from the article really got my attention. I remember watching a documentary in Econ 101 that explained how some bankers would sign refinancing forms and foreclosure forms on behalf of the borrowers when they felt that they needed to. I think that forgery and fraud definitely stemmed beyond just the bankruptcy courts and has been implemented in many different financial structures in the U.S., especially before the housing bubble burst and probably still to this day. The fact that the banks are still ignoring and even denying these claims is astonishing to me.