- Eastern Group Publications/EGPNews - http://staging.egpnews.com -

Archived: EDITORIAL: Mortgage Settlement With Lenders Nothing to Be Proud Of

You have to hand it to the nation’s largest mortgage lenders for striking a deal that frees them from hundreds of billions of dollars in potential liability from lawsuits brought by mortgage owners fraudulently foreclosed on for a measly $25 billion.

Many of those who lost their homes to illegal and fraudulent foreclosures can now expect to receive a check for $1,800 to $2,000 to forget about the hundreds of thousands of dollars in down payments, monthly mortgage payments and in equity lost when the banks sold off their homes while claiming they were trying to help the homeowners modify their loans.

We don’t blame the banks for the ridiculous settlement deal, after all, to them it was just good business.

We do, however, blame the attorneys general from across the country and the Obama Administration for not holding out for a much larger settlement. There was more than ample proof that homeowners, on a large scale, had been defrauded of their hard earned money.

They had the lenders dead to rights, and should have demanded a deal that would have helped more homeowners recoup some of their money, if not their homes.

They should have threatened to prosecute the scofflaws for their fraudulent activity. In fact, they should have made sure some of them wound up in the hoosegow where they belong.

For one brief moment, it seemed California’s Attorney General, Kamala Harris, was going to have the courage to turn down the deal and press on for a larger, if not fairer deal. But in the end, she too folded and fell in line with her peers.

We have to say we are disgusted with the way the Obama Administration and attorneys general seemed to be beaming with pride for a job “well done.” There has been a lot of chest pumping and congratulatory back slapping over this deal, with some even trying to pass off the agreement as a good deal for consumers because it comes with “stricter’ regulations. What good are regulations if everyone knows the only punishment coming is a slight slap on the wrist?

Ask foreclosed-on homeowners if they think congratulations are in order, or if they still feel victimized by the banks, and now their elected officials.