All the Devils Are Here

If you're interested in how Wall Street and the banks stole all the money, go watch last night's Charlie Rose.

Authors Joe Nocera and Bethany McLean on their book 'All the Devils Are Here: The Hidden History of the Financial Crisis'

Related:

Doyle McManus

The home loan modification mess

A mortgage servicing company makes money by charging fees based on the principal amount of the loan; reducing the principal reduces the servicer's income. Foreclosure guarantees reimbursement of a servicer's fees and costs; modification can make reimbursement harder. And when a loan is in default and heading toward foreclosure, a servicer can collect late fees and other charges. "For servicers, the true sweet spot lies in stretching out a delinquency without either a modification or a foreclosure," notes Diane E. Thompson of the National Consumer Law Center.

Banks don't like modifications either because they then have to take a write-down on their balance sheet. They'd rather just take your house away.