How ‘Consumer Relief’ After Mortgage Crisis Can Enrich Big Banks
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A home in Henderson, Nev., that was foreclosed. Some deals by big banks to provide mortgage relief for borrowers have a built-in profit incentive. CreditMax Whittaker for The New York Times
In every multibillion dollar settlement with a big bank that peddled faulty mortgage securities, a major provision has been a requirement that the bank provide “consumer relief.”
In the case of JPMorgan Chase, for instance, the nation’s largest bank satisfied its requirement to provide $4 billion in consumer relief in September by modifying and restructuring mortgages for about 169,000 borrowers — many of them the bank’s own customers.
Goldman Sachs, which is not in the business of making home loans, is seeking to meet its obligation to provide $1.8 billion in consumer relief by buying up tens of thousands of distressed mortgages at discounted prices from Fannie Mae, the government-sponsored mortgage firm, and then hiring outside firms to rework them…
How ‘Consumer Relief’ After Mortgage Crisis Can Enrich Big Banks
