Measures taken to prevent another subprime crisis

In the time since the subprime crisis very little proactive efforts have been presented to preclude another recurrence.  Granted, there has been an investigation, hearings held to levy blame, monetary restitution promised, and help restructuring homeowners loans.  These are all actions forced on the lending institutions but there is no word what the institutions are doing internally to prevent another crisis.  That is the real concern.

The Justice Department pointed fingers at the worst abusers such as Bank of America, JP Morgan Chase, and Citigroup.  A $25 billion deal was brokered to provide help for borrowers facing foreclosure although for those whose homes were already foreclosed, all they would receive was $2,000 (Fox News Politics).  An Independent Foreclosure Review was established to, “give the homeowners an opportunity to have an unbiased third-party review their foreclosure” (Hallman, HuffPost, 01/10/2013).

The above actions are all well and good, however, considering the lack of ethical and moral fortitude by lenders in the past, I’m skeptical.  Even more ominous is the fact the Independent Foreclosure Review has been scrapped and, basically the homeowners are to work with the very lenders who led them astray from the start (Hallman, HuffPost, 01/10/2013).

In my research, no information was found describing what these lending leaders are doing to shore up the  ethical and moral standards of their institutions.   They had policies and standards in the past but they were not applied and a faulty standard became ingrained.  This should not be allowed to happen.



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