As part of the government’s settlement with five of the country’s largest banks, there is money available to help borrowers refinance their mortgages. The idea is that refinancing to a lower interest rate can help borrowers make their payments with greater ease, and the banks can meet the terms of the agreement.
“There is a long history of institutions settling claims to avoid litigation,” Dr. Andrea Heuson said. Heuson is a Professor of Finance at the University of Miami in Florida. Heuson pointed out that banks don’t have to go through discovery, and deal with legal fees, when they settle like this. “[This is] just another one of those solutions that involves some retribution…It’s a pretty good agreement, given the way institutions are taking advantage of it.”
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