This is a Mortgage Solution?

by Gerri Willis

Finally. Some honesty on an issue that most bank executives won't talk about. Bank of America Chief Executive Brian Moynihan said yesterday at a meeting with analysts in New York that the administration's push to get banks to forgive billions in troubled mortgages is unfair to borrowers who've been paying their mortgages. The White House along with 50 state attorney generals are pushing for a multi-billion dollar settlement with banks in the wake of foreclosure abuses by lenders. The problem with the solution proposed by government officials, according to Moynihan, is that it would take away any incentive for homeowners who have jobs to pay their mortgage. After all, why pay if banks are ponying up dough for people who don't? Such a scenario would only delay the recovery in housing. And, goodness knows, we've been waiting too long for that already.