think4yourself

squashed:

Speaking tentatively, because I don’t have all the details I would like, I’m happy with this settlement. It’s huge. As in, it’s over three tines bigger than the huge tobacco settlement. Critically, it also preserves borrower’s rights to sue.

Here’s the bottom line: a dead bank on a platter doesn’t help anybody. Twenty-six billion in relief to struggling borrowers, however, is huge. And that only includes relief for the mortgages owned or serviced by the big five, excluding Freddie/Fannie loans. Practically speaking, that means more relief in the pipeline.

Additionally, the help is concentrated where it’s needed. If you made a bad real estate investment but can still afford the mortgage, that’s rough, but you’re not at risk of losing your home. This settlement goes a long way toward resolving the worst of the foreclosure crisis.