A key step was taken yesterday in moving the country beyond the housing crisis, a crisis that triggered the worst recession in decades and whose lingering effects continue to hinder the nation’s nascent recovery. The deal, which brought together 49 state attorneys general and the Justice Department, was a large-scale compromise between states, the federal government, two political parties and the nation’s largest financial institutions. Given the number of players at the bargaining table, it’s no surprise that this isn’t a deal made in heaven. There are significant shortcomings, and critics have already offered legitimate reasons why the deal will not turn the housing market around or even serve justice to those parties that committed fraud and broke the law. At the same time, the settlement will offer real relief to homeowners across the country, and it lays the groundwork for sane regulation of servicer conduct.
