BofA Reduces Mortgage Loan Principal For 200,000

As a result of a settlement with state and federal government, Bank of America is writing down mortgage loan principal for about 200,000 Americans, sometimes as much as $100,000 per mortgage.

Banking is far more regulated than ordinary business. Bankers can’t invest and do business as they wish. They have to abide by a thicket of government regulations and be constantly on guard for attacks from interest groups who can lobby politicians and bureaucrats to do their bidding.

No wonder that bank stocks are in the toilet.

If the government regulated your business and you were as vulnerable to social and political pressure, you too would have a hard time staying afloat.
The USA Today reports:

Bank of America will reduce the amount owed by the homeowners as much as $100,000 in some cases. Only mortgages currently owned by Bank of America will qualify. Those owned by government entities Fannie Mae and Freddie Mac, or backed by the Federal Housing Administration will not be eligible.
The move will help the bank reduce the amount of penalties it owes to the government’s Housing & Urban Development agency by $850 million.
Those penalties were ntry to resolve investigations into abusive home lending and fraudulent foreclosure practices.
About 11 million American households are “underwater” on their mortgages, meaning they owe more than their homes are worth. The settlement with five mortgage lenders is expected reduce loans for only about 1 million of those homeowners and send checks to others who were improperly foreclosed upon.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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