The spin to soften the crime is in the house kids.
Note how it's the "foreclosure front" rather than "Mortgage-gate". A name it's self that brings up the reminder a crime or rather many Federal crimes have been committed by the Mortgage Industry for the sake of speculation greed.
It always goes back to Wall Street and the buying and selling of financial instruments.
Note to the fix the author thinks should be imposed.
To once again lie the fix upon Barney Franks door.
Because Barney is buddies with those who committed the crimes.
He worked hard to ensure that Fannie and Freddie would comply with their needs.
His suggests of sway are all geared toward the coverup of the crime.
What worries me is he is also ascociated with the letter Senator Al Franken sent to Obama, Holder and the others he sent it to.
If mortgage companies work fast now and get sign a quick fix, you will have left a carbon print allowing them to get off the hook.
They need a miracle and are banking on you needing one to.
But your miracle has actually already happened, make sure you don't give it back.
I heard from over at Karl Denninger's place that Wells Fargo is threatening to sue people if they don't sign for their fix.
Don't sign no matter what they threaten, they don't have a leg to stand on.
To the extent the suspensions ensure a process that is legal and fair, they are to the good. But delays feed uncertainty, and that could be bad for the economy. Will they result in fewer foreclosures, helping to prop up prices? Or will they create a backlog of foreclosed homes that will push prices down when they come to market?
The best outcome would be for lenders to work harder to avoid foreclosures altogether. Congress and the administration need to give borrowers more tools to fight for modifications of their mortgages that will allow more Americans to stay in their homes.
The Obama antiforeclosure effort, for instance, requires lenders to do an analysis to see whether it is more prudent to foreclose on a troubled loan or to modify it. Lawyers for borrowers say that it is often unclear why a modification is denied. Congress should pass a law giving homeowners the right to challenge any foreclosure if the lender cannot show it has done a proper analysis.
The Dodd-Frank financial reform law could also help. One provision authorizes — but does not require — more government spending to provide legal services for struggling homeowners. That should be a priority.
What sort of loan modifications are available matters a lot. Reductions in principal are generally regarded as the best way to both deliver relief to homeowners and avoid redefault. The administration has altered its programs somewhat to emphasize principal reductions. It must press lenders to follow through.
The central weakness in the administration’s antiforeclosure
