BG, do you have any evidence that lenders “thought” they would be reimbursed by the federal government for allowing delinquent borrowers to remain in their homes? I’ve seen no evidence this was ever suggested, or even discussed. Nor do I think this was ever a motivation for their failure to act. It’s much more likely they were simply incompetent. Not only did they not get fully reimbursed. They never got partially reimbursed.
