While a lot of attention has been paid to recent foreclosure freezes and the hordes of unqualified “robo-signers” hired to rubber stamp mortgage documents, the bankers of Wall Street want to remind the homeowners of America — This is all your fault.
Reuters quotes the president of Mendon Capital Advisers:
Everyone’s responsible for following the law. If we all don’t have to pay our mortgage, should we just stop paying taxes, too? Your mortgage didn’t get to a robo-signer by accident, it’s because you’re not paying.
And then there’s this portfolio manager from Greenwood Capital Associates:
If you didn’t pay your mortgage, you shouldn’t be in your house. Period. People are getting upset about something that’s just procedural.
On the flip side, there are those that would say that the current robo-signer scandal isn’t really about properties that were rightfully foreclosed on but about mistakes, like people who were not behind on their mortgages being foreclosed on, or people who didn’t even have a mortgage to begin with being threatened with foreclosure.
Where do you come down on this chicken/egg debate?