Just a few short months ago, Florida’s Attorney General Pam Bondi was reported as being opposed to settlement terms with the banks and loan servicers that involved reducing the principle on mortgages. I found the commentary from Bondi and other attorneys general warning against a “moral hazard” absurd and insulting when I hear very little out of any of our leaders talking about the apocalyptic trajectory the banks and Wall Street players have placed this country on and I was incensed to read reports that our country’s attorney generals were considering settlement terms that amount to not even appreciable slaps on the wrists for these banks and servicers.
Well, the press is reporting, Americans are speaking and it looks like our leaders are waking up to political reality. It seems like a quick sweetheart deal for the banks is slipping away….consider today’s reporting on the settlement terms:
“Attorney General Bondi would consider principal reduction in cases where that is an appropriate remedy for particular harm suffered by individuals,” a spokeswoman said in a statement. “The important thing is to ensure that principal reduction not cause further harm to Florida’s housing market by encouraging people to default on their mortgages.”
These are tough times, but we’re not done yet….if elected leaders listen, perhaps some good can come from all of this.