Mortgage companies have already reduced home-loan balances for more than 100,000 borrowers, according to The Wall Street Journal. This comes despite efforts from U.S. banks to resist attempts from state attorney generals to force them to cut the amounts owed by some homeowners facing foreclosure. Officials from several major lenders, including J.P. Morgan Chase, Wells Fargo, Citigroup and Bank of America, are set to go to Washington, D.C., Wednesday to meet with state attorneys general and government agencies, according to the Journal. This is the first meeting after the lenders got a “term sheet” from attorneys general earlier this month, asking them to consider more borrowers for write-downs. See the full story here.
This week’s question: Should banks reduce the home-loan balances owed by more homeowners facing foreclosure?