A more certain consequence was that the delinquent borrower would be cut off from future loans, which was serious for those who regularly relied on loan sharks.
Survey respondents say that bank executives are wary of such decisions as they may be construed as being soft on delinquent borrowers, thus potentially inviting regulatory or vigilance action.
When lenders call to look for delinquent borrowers and follow up, in answering the phone, women turn into baritones while men sound like sheepish little girls.
The bank has also agreed not to pursue foreclosures against any delinquent borrowers who might be eligible for a mortgagemodification as part of the settlement.
These issues could potentially prevent some foreclosure cases from proceeding and allow delinquent borrowers to stay in their homes indefinitely or wrangle settlements from their servicers.