Foreclosure Mods Farce

WELLSFARGO-RATING/SANDPNew Orleans The scorecard is finally being written on the ballyhooed, though mostly baloney, loan modifications being done by big home mortgage loan servicers and trumpeted by the federal government (and largest shareholder in many of these outfits) as a real plan for foreclosure relief, and it stinks.  Gretchen Morgenson in a searing Times column today that rested on the analysis of Professor Alan M. White at Valparaiso University Law School of 3.5 million subprime and alt-A mortgages in securitization pools controlled by Wells Fargo, and led to the Times editorializing that banks need to start writing off principal, since they are losing their shirts anyway.

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