50 State Attorney General Mortgage Probe Rejects Idea of Global Settlement « naked capitalism

50 State Attorney General Mortgage Probe Rejects Idea of Global Settlement « naked capitalism: "This is really not hard to understand or get right. Foreclosures now are producing losses that exceed 70% of the mortgage balance on average. A deep principal mod for viable borrowers would be a win-win for everyone besides the servicer and subordinated bond investors. Because servicers keep advancing principal and interest to investors, subordinated bonds, which by any standard should be worth zero are instead getting interest advances. In the House Financial Services committee hearing on mortgage documentation issues, Maxine Waters asked a panel of banking industry representatives to provide names of investors who were opposed to mortgage mods and a Bank of America representative ‘fessed up that it was very few."