OK, we know that banks were not perfect in processing foreclosures.
They were overwhelmed with the number. They’re losing an average of at least $40,000 per foreclosed home.
Still, I don’t know of anyone who’s made his payments who’s been evicted from his home.
So why not settle this dispute? Slap the banks on the wrist for imperfect processing? And let the free market resume its dirty work.
Politicians are eager to posture. They prefer to do that than to take responsibility for the housing mess they created. They want to portray banks as the villains and extort money to pay off delinquent homeowners and run for re-election.
State and federal officials are negotiating a settlement with the five largest mortgage servicers, including Bank of America in Charlotte, N.C., and JPMorgan Chase in New York, over their servicing and foreclosure practices.
A person familiar with the matter said last month that banks want liability releases that cover other areas of their mortgage operations besides servicing, including the bundling of loans into securities.
Dan Frahm, a spokesman for Bank of America, said the bank shares Masto’s goal of helping homeowners.