The administration of President Barack Obama has been continuously stressing that it wants to keep Americans in their homes.
After all, the U.S. Federal Reserve System is giving the money center banks including Wells Fargo, virtually free money so the same banks can turnaround and lend it back to the U.S. Treasury keeping the interest paid by the same Treasury as profit. Isn’t it great? Borrow money from taxpayers at an interest rate of 0.00%-0.25% and then lend it back to taxpayers at a substantially higher interest rate. A practice known as making money on the spread.
Why modify mortgages when you can force the borrowers out of their homes and use taxpayer money to cushion the loss?
Now along comes Wells Fargo Bank.