Will Obama Slam the Mortgage Industry Yet Again?


Yesterday news broke from HUD secretary Shaun Donovan that a robosigning deal was imminent. Today, we learn that maybe a deal isn’t as close as Donovan portrayed. Then again, the ‘State of the Union’ address is next week and there is some talk that President Obama wants to mention the robo settlement using the speech as yet another opportunity to bash the mortgage banking industry. Of course, the White House still doesn’t know the difference between a loan broker and bank LO, so the prognosis isn’t good. It’s also unclear how many servicers will be party to the deal (six or less?) and how much might be paid out in the form of “cram-downs.” Judging by the emails I’ve received over the past year it’s safe to say that mortgage professionals will vote for the GOP by a ratio of 9 to 1 come November.

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