Seeing An Old Problem Through New Eyes

Matt Weidner blogged this week about the Texas Law Review article authored by law professor Katherine Porter back in 2008 entitled Misbehavior and Mistake in Bankruptcy Mortgage Claims.  Max offered his own commentary on the study as well.

It’s easy for those of us immersed in the mortgage industry shell games on a daily basis to become accustomed to the kind of behavior Porter uncovered in her study and the kind of behavior we witness every day.  That’s why it’s useful to hear the thoughts of someone reading the material for the first time and to experience again the dismay at facts like this one:

On an aggregate level, mortgage creditors assert that bankrupt families owe them at least $1 billion more than the families who file bankruptcy believe they owe.