2nd Mortgage Holders (Banks) Now to be Bailed Out Too - Breaking!

Our nations largest banks are being weighed down by second mortgage liens (Home Equity Lines/Loans). You have heard this in many of their earnings calls recently.

For many banks this is their largest residential mortgage exposure. For example, Wells Fargo still carries $84 billion and Bank of America and Chase about $100 billion a piece. The banks were very touchy in their recent earnings reports on this topic. Wells Fargo actually changed the definition of ‘default’ from 120 days to 180 days to push out defaults further and hides losses. See my report on Wells Fargo’s mystery earnings.