Mitigating the Impacts of Fraudulent Foreclosures

While it may seem natural that a severe downturn would trigger a rising level of displacement, mounting evidence suggests that widespread fraud by lenders has led to foreclosures that should have and could have been avoided. This is the backdrop for ongoing talks between the big banks and a coalition of state attorney generals to reach a settlement that avoids future litigation. There are credible estimates that banks saved at least $25 billion by failing to comply with the law. We should expect a commensurate fine, but we should focus efforts on keeping families in their homes and support more mortgage modifications. Here’s a podcast describing some ideas promoted by Senator Jeff Merkley to do just that.