Who would have ever thought that some good could come out of the current mortgage crisis? After reading an article titled “Chase Bank foreclosures being ‘donated,’ and sold at ‘steep discounts’ to nonprofits”, I learned that several banks have joined forces to help distressed communities. Lending institutions such as JP Morgan Chase and Wells Fargo have been remodeling and re-selling foreclosed homes at huge discounts to needy families. In some cases, houses were even given away to non-profit organizations. The shear scale of this generosity is what shocked me the most. According to the article, “Chase has donated and/or sold about 1,200 homes” in the last two years.
Although I applaud these organizations for their philanthropic efforts, it’s the least they can do. After all, their poor lending practices were one of the main causes of the financial meltdown. Rather than being responsible lenders, banks around the country got greedy and gave out as many loans as possible. At times, people received a mortgage without a down payment or even a simple credit check! Many Americans who were clearly incapable of paying back loans still qualified.
I still have very little trust in American banking. However, this article has improved my views. It impresses me to see that lenders and large organizations have more than money on their mind.
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