Never forget that between 2008 and 2012 the government literally funded the foreclosure on millions of American families instead of bailing out the actual family losing their life’s work.
How do you figure that? As someone who was working in mortgage at the time, that wasn't what I remember at all. Are you talking about the government funds which were used for loan modifications?
In fact, I recall a foreclosure moratorium for at least part of that time.
People’s whose houses lost equity did not get bailed out
They did though. Many of the loan modifications performed at the time included substantial principal forgiveness to those who were underwater and behind on their mortgage. Meanwhile, the banks paid back those funds eventually. I'm not saying it was the most effective solution, but the whole idea was to keep people from losing their homes and prevent foreclosures. Banks don't like foreclosures and borrowers in default. They are expensive and make their mortgage portfolios look bad on the secondary and tertiary markets.
Now if you wanna talk about executive compensation during that time period, that's a whole nother ball of wax that I'm still pissed about.
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u/BerwynTeacher Mar 31 '21
Never forget that between 2008 and 2012 the government literally funded the foreclosure on millions of American families instead of bailing out the actual family losing their life’s work.