That's basically how many homeowners will be helped by the banksters taking a haircut on the mortgages they hold. Under the terms of the settlement, the banks will reduce the balance owned on underwater mortgages* by $17 billion. The total amount of "underwater" balance nationwide is $700 billion. $17 billion is, in comparison, not even a drop in the bucket.
For closing their eyes to mortgage fraud and then engaging in their own acts of fraud in the foreclosure mills, the banks effectively will pay a fine of $2,000 per mortgage. They will pay nothing for loading up mortgages with excessive fees or overcharging for insurance.
And most homeowners who are underwater won't be helped. Remember that the banksters either unloaded those mortgages on Fannie Mae and Freddie Mac, or they "securitized" them into "collateralized debt obligations". Those mortgages are not covered by this deal with the banksters.
No wonder that the banksters love this deal.
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* Those mortgages where the amount owed is more than the value of the property.
The English Impatient, Part 2
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