High Mortgage Modification Defaults With Double Wammy To Tax Payers
Mish always highlights the "meat" of a post, as he has done in More Prime Defaults.
The mortgage modifications reduced payments to 31% of income, but people have too much other debt to manage. When I was writing Six Degrees of Leverage I used 30%, but I will repeat, "make no mistake here; household budgets are tight when making the maximum payment."
So, doing a mortgage modification when people are saddled with still carrying their student loans, car loans, credit card debt, and so on means that outrageous fee of $1000 the banks are collecting for these modifications is just more ass wipe money, as in it has done as much good as if it was used as ass wipe.