Frankly, although individual borrowers may continue to suffer, the best prospect for an equitable long term solution is to let the wheels of justice continue to grind on. The outburst of reform ideas seems to be the direct result of the Massachusetts Supreme Judicial Court Ibanez decision. The terms of debate are, perversely, still very much skewed in favor of banks despite the considerable harm they have done to homeowners, investors, and communities. But judges are increasingly abandoning the assumption that banks must be right in foreclosure cases, and a more objective posture is sure to put the banking industry even more on the back foot. Letting the courts continue to do their work offers the best hope of exposing, and therefore ultimately remedying, large-scale misconduct by the securitization industry.
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