Donovan’s Folly: HUD Secretary’s Justification for Keeping Housing Market Going Neglects Clear Risks

"Housing and Urban Development Secretary Shaun Donovan is out today with a more measured, slightly more progressive-friendly, but still ultimately unsatisfying take on the foreclosure fraud mess. He does say that the faulty documentation of foreclosure documents from the same banks and servicers that caused the housing crisis is “shameful” – the strongest word I’ve seen from an Administration official so far. And he asserts that nobody should lose their home from a bank mistake, which is nice. But while he lists all the ways in which the Administration is reviewing the practices of the servicers, and forcing them to undergo reviews of their own, he eventually toes the White House line against a national foreclosure moratorium."