Grossman on Bank “Robo-Signing” Settlement
Lauren RubensteinGrossman says $8.5B settlement should make banks think twice before relaxing lending standards too much
Professor of Economics Richard Grossman appeared on First Business News, a nationally syndicated television program, to discuss the impact of an $8.5 billion settlement announced between 10 banks and federal regulators over foreclosure abuses. The settlement resolves the banks’ “robo-signing” scandal, a hasty process by which banks approved foreclosures. Funds from the settlement will be distributed to borrowers who lost their homes, or are at risk of losing them.
“What we should hope for in terms of this settlement is that it makes banks and other lenders think twice before they relax their lending standards too much,” said Grossman.
Andrew Chatfield
Mike Mavredakis