After being given Billions of Dollars in bail out money and every conceivable perk and incentive you can think of - Big Banks are once again in the drivers seat, calling the shots, and the Government has no clue what to do about it.
Mathews Realty Group
R,.E. Advisor-Investment Services
Retribution deferred: lenders prove too powerful to be prosecuted
Lenders are still getting away with highway robbery, according to Nobel Prize winning economist and New York Times Op/Ed columnist, Paul Krugman.
Big Banks have been accused by the AGs of luring distressed homeowners into their loan modification programs under false pretenses. Loan modification programs, known as extend-and-pretend modifications, were designed to squeeze as many mortgage payments as possible out of distressed homeowners, as well as extend the amount of time lenders had before reporting losses to their investors and government regulators. The delay essentially allows lenders to drag their collective feet while simultaneously bilking homeowners. As is now common knowledge, thousands of homeowners were foreclosed on while awaiting a loan modification — modification lenders knew would never come. [For more information on extend-and-pretend mortgage modification programs, see the April 2010 first tuesday article, Surge in loan modification defaults.]
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