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Why Banks Prefer Foreclosures over Mortgage Modifications

[Frank, a Newton Democrat, said he is holding a hearing Thursday on his proposal to provide government loans to homeowners who have lost their jobs and can't qualify for loan modifications and other help because they don't have income.]

Loans to homeowners who don't have income... Hey, didn't we do that already?

["The problem is worse than we thought," Frank said. "The failure to do these modifications means the whole situation stays bad longer."]

He's got it exactly backwards. I cannot believe that someone who's in charge of regulating an industry has so little understanding of the subject matter.

Is he really that ignorant of how this industry works, or is he that far into someone's pocket that he can spout this nonsense with a straight face?

Either way, not good.