“Bad timing for the banks because the new law encourages people decide to walk from their mortgages rather than their credit card debts (which can no longer be discharged).”
Not sure what you mean by this. I was speaking of stricter eligibility for chapter 7 Filing. I think the fact that their home prices are so inflated and the disparity between thier motgage payment and what they can rent the same place for that encourages them to walk away.
“Underwriting is now upside-down where mortgages are riskier than credit card loans. Big problem for the banks is that mortgages pay low interest rates but have high risks. It’ll take the banks a few years to rethink their business models.”
