Mortgage industry facing a new challenge

The federal government has been really aggressive in the past several months in infusing money into the banking system in order to turn the tide on the still deteriorating real estate market. One of the key goals of this was to assist homeowners facing foreclosure find a way out of their mortgage payment problems. The capital, however, was given to the banks in good faith, without enforceable regulations to make sure they would comply.

Sure enough, it appears that many lenders have found far better uses for the money than help struggling borrowers. For one, it's nice to get the taxpayer to take care of a balance sheet that sags under the weight of under-performing mortgages, acquired without careful analysis of their soundness. Hoarding cash also gives them the opportunity to grab a failing financial institution or two when nobody is looking. There are many other ways to make money work. Please click on the link to read the entire article.