Consumers rewarded for defaulting on mortgages

Eleven banks, including Bank of America, Citi, and Morgan, have begun sending checks to "victims" of the robo-signing scandal, by which banks foreclosed on mortgage defaulters without observing proper procedures.  The cost to the industry, and therefore their shareholders and depositors is $9.3 billion.  Of the $9.3 billion settlement, $3.6 will be distributed to the victims in the form of cash payments. There are 4.2 million of these victims; a case-by-case review has found that only 53 of the 4.2 million were not actually in default.  (Yes, the number is 53.)  So the others (4.2 million minus 53) were in default.  This is why they are being compensated.

It's a little sad that people who actually paid their mortgages are not being compensated.  But such is the way of the world.