Banking execs skeptical on mortgage reductions

[SomeYoungGuy]

http://finance.yahoo.com/news/Banki...tml?x=0&sec=topStories&pos=main&asset=&ccode=

From the article:
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The executives told lawmakers on Tuesday they are reducing the amount that troubled borrowers owe on their home loans only in limited cases. That's because consumers who are paying their mortgages on time are likely to see such reductions as unfair, they said.
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If gov't funded mortgage resetting happens, then "My IRA/401K went down in value, I need a bailout" won't be far behind.

 

[morganist]

Quote from SomeYoungGuy:

http://finance.yahoo.com/news/Banki...tml?x=0&sec=topStories&pos=main&asset=&ccode=

From the article:
----
The executives told lawmakers on Tuesday they are reducing the amount that troubled borrowers owe on their home loans only in limited cases. That's because consumers who are paying their mortgages on time are likely to see such reductions as unfair, they said.
----

If gov't funded mortgage resetting happens, then "My IRA/401K went down in value, I need a bailout" won't be far behind.

the problem is if the mortgages default your losing your 401k due to the investment going. either way you lose.

 

[PocketChange]

Not to encorage fraud.. but seeing as these notes have been flipped multiple times and in many cases the original note no longer exists. Whats to prevent a person from fabricating a paid in full cash receipt to a phantom loan servicing company? The judge would dismiss the foreclosure and tell the lender to take his claims up the chain.

Quote from morganist:

the problem is if the mortgages default your losing your 401k due to the investment going. either way you lose.