The New York Time’s OP-Ed piece seems to think that Eric Schneiderman, New York’s Attorney General is right to resist the White House’s Mortgage Deal. The Obama administration basically wants to work out a settlement with the large banks for their participation in their fradulent foreclosure practices which included robo-signers, questionable to fradulent supporting documents and other misdeeds. The problem? To go along with the White House settlement would severly restrict the state’s own investigation and prosecutions; and it would not provide the redress on par with the bank’ wrongdoing or borrower’s needs. After the HAMPA fiasco and other attempts for the government to assist homeowners, the attorney generals are right to be doubtful of the government’s ability to affect real change or help for the homeowner. Instead, the NY Times OP-ED, suggests, and I agree, that the administration should pursue principal reduction for stressed borrowers and should do so IMMEDIATELY by calling on Fannie Mae and Freddie Mac to refinance underwater loans of borrowers who are current in their payments. A proposed settlement is not the best remedies nor should the government pretend that it is the only solution.