Fees Glorious Fees

More Reasons The Banks Aren't In A Hurry To Modify Your Loan

Two days after Washington officials chastised major lenders and demanded they pick up the pace of mortgage relief for troubled homeowners, the New York Times says the banks have little incentive to walk away from the lucrative fees generated from delinquent loans. Experts say the financial incentives the federal government is offering lenders to modify home loans pale in comparison to the more lucrative process of "collecting fees from delinquency, and then more fees through the sale of homes in foreclosure." The adjacent bar graph shows completed loan modifications (blue line) vs. delinquencies and foreclosures. (Larger Image)