President Obama has punished crooked mortgage bankers — by giving them a big kiss on the lips.
The 5 biggest banks have to cough up $25 billion in restitution — and Obama thinks we’ll see that BIG number and think, “Gee, he really NAILED them!”
Realistically, how far does $25 billion go?…
Right now, 11 million homeowners are “underwater,” which means they owe an estimated $700 billion more on their homes than the homes are now worth. Under this deal, maybe 1 million, about 9%, can get their loans modified. That won’t even begin to put a dent in it.
Obama said the settlement “will speed relief to the hardest-hit homeowners, end some of the most abusive practices of the mortgage industry and begin to turn the page on an era of recklessness that has left so much damage in its wake.”
Is he KIDDING?
The “hardest-hit” were the estimated 8 million suckers who fell for predatory loan terms and ended up on the curb. Under this settlement, about 750,000 will get a check for $2,000 — and the banks have 3 YEARS to get around to paying it.
Meanwhile, the banks were granted added protection against states pursuing civil charges against them.
Homeowners can still file criminal charges, but rotsa ruck to the little guy who couldn’t even make his mortgage payments prevailing over a bank’s army of lawyers in protracted litigation.
This settlement represents a limp-wristed swipe at bank profits. Even worse, NO bank honcho who condoned unscrupulous loans, or foreclosed with bogus documents and bank employees forging signatures, is going to jail.
There’s more: The banks are now free to complete millions MORE foreclosures they had on hold during negotiations. More homeowners already down on their luck can just bend over and wait for the screw job.
Mike Heid, president of Well Fargo Home Mortgage, said this “represents a very important step toward restoring confidence in mortgage servicing and stability in the housing market.”
It’s a total OUTRAGE that Obama or the banks think they’re fooling anybody.
Once again, when faced with bankers’ greedy, unethical, criminal behavior that is leaving millions of Americans in financial ruins, Obama rolls over and lets the bankers scratch his belly.