The banks ain’t payin money folks….it’s all funny money and phony accounting. The biggest chunk of the “money” is writing off bad debt and reaching into the pockets of mortgage investors and POOF! telling them their investments are gone!
- $3 billion: total amount banks can be credited for offering refinancing to homeowners that are underwater
- $17 billion: total amount banks can be credited for offering loan modifications ($10 billion) and other forms of relief for underwater borrowers, separate from the refinancing incentives above ($7 billion)
