In the second* right-on editorial in two days, the NY Times says:
The Obama administration has turned up the heat on Eric Schneiderman, New York's attorney general, to go along with a proposed settlement with the nation’s largest banks over dubious foreclosure practices. Mr. Schneiderman should stand his ground in not supporting the deal. The administration says that a settlement would quickly deliver much needed relief to hard-pressed borrowers, but it's doubtful it would provide redress on a par with the banks'€™ wrongdoing or borrowers'€™ needs....The Times even goes on to say
The administration should pursue principal reductions for stressed borrowers, and it could do so immediately by calling on Fannie Mae and Freddie Mac to refinance the underwater loans of borrowers who are current in their payments.which echoes the proposal the day before by emptywheel:
...the Administration has an €œimmediate opportunity to help a huge number of borrowers stay in their homes, without any action from Eric Schneiderman. They have a way to do so more swiftly, in such a way the servicers actually would be held accountable. It would involve offering refis with principal reductions to all the underwater homeowners whose loans are owned by Fannie and Freddie.[more]