Five major banks have agreed to a deal that was good enough for 49 of the 50 state attorney's general, but millions of homeowners aren't so sure. Even President Obama says, "It's just a start." Others call it "a drop in the ocean," "a paltry down-payment" and "public relations." It covers only about two million of the 11 million who are under water. Cash settlements for improper foreclosures will be less than $2,000. Banks can still be sued for abuse and deception, and they've agreed to pay $26 billion up front. But negative equity totals $700 billion. Many questions remain about administration and enforcement. We get a range of answers from advocates, bankers and homeowners in distress. (This story was informed in part from sources in the Public Insight Network.)
Mortgage Settlement: Homeowner Relief or a Break for Banks?
- Nelson Schwartz - New York Times - @NelsonSchwartz
- William Riley - underwater mortgage holder
- David Lykken - Mortgage Banking Solutions - @DavidLykken
- Elizabeth Pollock - underwater mortgage holder
- Claudia Cappio - California Housing Finance Agency - @CalHFA
- Bruce Marks - Neighborhood Assistance Corporation of America