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Can you imagine the PR boon of being the first bank to voluntarily freeze mortgages during a pandemic?
We have tens of millions of people on the brink of eviction or foreclosure, and Congress is dragging their feet.
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We have tens of millions of people on the brink of eviction or foreclosure, and Congress is dragging their feet.
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Instead of waiting for a solution to break through the partisan bickering, the people running a bank could quite easily take action themselves.
They have the power to do so. Is it unusual? Not normal protocol? Totally. But nothing about right now is normal.
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They have the power to do so. Is it unusual? Not normal protocol? Totally. But nothing about right now is normal.
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Banks are at the top of the food chain when it comes to housing. Tenants aren't getting relief from landlords because landlords still have to pay mortgages. Lenders *could* step in. They *could* more easily absorb the financial impact than landlords, tenants, or homeowners.
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They *could* have the foresight to see that while it means a significant blow to profits in the short term, there are even greater long term bottom line benefits of NOT de-homing an enormous chunk of the population.
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By this point, everyone reading this is likely rolling their eyes, calling me an idealist who's out of touch with reality, because hello, when would people running banks ever do something like this without the government shoveling billions at them to cover the losses?
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And honestly, that's kind of my point.
Banks are going to be fine. Whatever happens, Congress will bail them out. They don't need to help their customers, and no one that high in a financial institution ever got there by putting altruism above profits.
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Banks are going to be fine. Whatever happens, Congress will bail them out. They don't need to help their customers, and no one that high in a financial institution ever got there by putting altruism above profits.
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Not even temporarily in an effort to address an unprecedented crisis that requires unprecedented solutions. Banks aren't going to think outside the box unless it increases their profits. They're not going to freeze mortgage payments or interest unless lawmakers compel them to.
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So everyone who beats the "small government" and "free market" drums, maybe keep that in mind.
No one wants the government micro-managing every facet of our lives.
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No one wants the government micro-managing every facet of our lives.
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But maybe we also don't want to be at the mercy of people who, even in times of widespread crisis, won't take the initiative to keep *millions* from becoming homeless unless they're both required and paid to do so.
/end
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