Is The Congress About To Pass A Bailout, And Save The Banks From The Mortgage-Putback Crisis?
Oct. 16, 2010
It was a depressingly news-filled week for bankers on the mortgage front.
First, you have the foreclosure-gate mess, which will do unquantifiable damage to the system of housing finance in the US. The scandal has to do with the lack of/improper paperwork done by the banks, as they attempted to execute foreclosures on a Ford-ian scale.
Then there’s this new, brewing story about mortgage putbacks and the question of whether banks who sold customers baskets of faulty mortgages could be forced to give their clients a refund, potentially costing billions of dollars.