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By Amanda Williams
On Tuesday, the executives of Bank of America rejected the idea of writing off tens of billions worth of mortgage debt. According to them, the idea is unworkable and unfair to borrowers who stayed current on their loans, reports the New York Times.
The BofA CEO Brian T. Moynihan says that the problem is: How to decide who to help. "There’s a core problem that if you start to help certain people and don’t help other people, it’s going to be very hard to explain the difference," said Moynihan. "Our duty is to have a fair modification process."
All of the 50 state attorneys general, along with a number of federal agencies are urging for a settlement over the foreclosure abuse investigations, and most of that money would be employed to reduce principal owed by homeowners facing the threat of foreclosure.
Executives of the Bank of America, the nation's biggest mortgage service provider, argue that any effort to help troubled borrowers should not reprimand borrowers who are under water but have managed to make their monthly payments.
Metro Orlando has consistently been ranked as one of the worst areas in the U.S.A. for foreclosures, following the real estate collapse.
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