The Obama Administration has been attempting to promote bank modification of mortgages, cutting monthly payments so that the foreclosure problem, which is at an alarming rate, can be resolved in a way that allows homeowners to keep their properties.
The problem is that the banks benefit from foreclosures, and have been reluctant to negotiate with homeowners to modify their loans to more equitable monthly payments. So the government is increasing pressure for positive action covering many more homeowners.
If the banks do not help, after having gained taxpayer support on bailouts in the past year, then they would face sanctions and fines by the Treasury Department. So the government is working toward being tougher toward the banks, which is long overdue. Of course, many conservatives will say it is not the government’s job to tell the banks what to do, but I say that since the banks were saved from bankruptcy by taxpayer funds during the last months of the Bush administration, and this year by the Obama administration, it is their responsibility to do what is the right thing: keep as many homeowners in their properties as possible!