Alert readers may have noticed that Douche Bank of Amerika is busy trying to negotiate an all encompassing settlement that would forgive it and it's executive racketeering clique of all criminal liability relating to mortgage and fraudclosure abuses. This in and of itself creates a "criminal moral hazard" that adds a new dimension to the word "farce."
However, the quid pro quo for this settlement (which is by no means a done deal) is an expanded mortgage relief program for borrowers in distress.
The conditions of this program are described by Shahien Nasiripour as follows:
"If an accord were reached, which participants stress is a ways away, borrowers that met the following criteria would be eligible for some kind of assistance:
• Their mortgages would have to either be owned by Bank of America or be serviced by the bank on behalf of private investors. Fannie or Freddie loans would not be eligible;
• A current principal balance of 1 million or less;
• The homes would have to be occupied by the owner, so no investor-owned properties;
• And the borrowers’ monthly mortgage obligation would have to comprise at least 25 percent of their monthly income.
Participants believe such a pool would lessen the risk posed by moral hazard [Emphasis added], a scenario in which people escape consequences for destructive activity, thus encouraging more destructive activity in the future, sources said"
Lessen the risk posed by moral hazard?
You know what I am thinking...
Will somebody please take this Too Big Too Fail Bag of BAC Shit out back and hang it and it's executive management from the rafters of the mortgage latrine!
Remember him? What Carribbean stronghold is he hiding out in?