No the servicers are doing it more from Government pressure from all the state attorney generals regarding the robo-signing issue, etc.. than they are from a business decision IMO. I’m OK with banks doing this if it is their own business decision. I’m NOT OK with the Government intervening in any way and forcing principle reductions and loan mods.
IMO the whole robosigning thing has been overdone and has just given the Gov a reason to force & pressure the banks to a settlement (more principle reductions and loan mods)…yes the banks should get penalized for handling paperwork improperly, but NOBODY was getting foreclosed on that was making their payments!!! I just don’t think the banks penalty should be reducing principles of deadbeats not making their mortgage payments, people who made dumb financial decisions to buy properties they couldn’t afford, and people who did cash out refis at the peak to buy the hummer and the boat.
