Another Massive Settlement Related to Subprime Loans
The Attorney General of New York reached a settlement of over $3 billion dollars with Morgan Stanley in connection with mortgage backed securities sold to investors. The settlement includes $550 million to help struggling homeowners and set up affordable housing.
The securities were backed by subprime loans that as we all know now were very exploitative of low income borrowers and hit minority communities especially hard.
I would have dedicated the entire settlement to helping people avoid foreclosure and get more affordable housing, but the attorney general has other priorities I suppose.
That kind of cash can make a lot of home affordable by lowering payments in modification. Keep people in their homes. Keep the value of neighboring homes form being negatively impacted by vacant properties after the foreclosure is finalized.