Question: "Foreclosure moratoriums help who?"
At first glance it seems that the year-end, 90-day or so foreclosure moratoriums are geared to help late, defaulting homeowners. However, these gestures are coincidentally occurring at the year-end reporting cycle for many financial institutions. This can temporarily improve the outcomes for quarterly and annual reports. These fleeting improvements would be for profitability or not-so-negative results. This would briefly contain damage to balance sheet items, equity and the all important regulatory capital. And, as an added benefit since the properties are not quite in foreclosure, bonuses just might be paid one more time.
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