2/9/12

Mortgage Settlement Deal with Banks

Well it looks like the banks, the feds and the states have all come out with a mortgage settlement to the tune of $26 Billion.

This is a good deal for most.  It's good for the banks because this mess is largely behind them now and $5 Billion for a big bank (the settlement was with five banks) is a rounding error and in my opinion, the banks weren't to blame for people taking out loans they couldn't afford but they were complicit.

This is a good deal for President Obama as well as he has promised to do something for homeowners.

Ultimately, this may help the economy as well since mortgage principle reduction is part of the deal as well as probably allowing banks the freedom now to refinance more mortgages which ultimately ends up as spent money in the economy.

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