Professor Kurt Eggert was quoted on “Morning Edition” (NPR) in a piece about whether Wall Street investment houses knew that they were packaging bad loans for securitization. “It’s amazing if any investment bank agreed to a maximum number of loans they would kick back for defects. That means that they were willing to accept junk. There’s no other way to put it,” says Kurt Eggert, a law professor at Chapman University. Listen now…

Professor Kurt Eggert was quoted in an article  in the Orange County Register entitled “Lenders try to help homeowners in trouble but is it too little, too late?” which addressed whether lenders and servicers are modifying enough loans in default and if not, what should be done about it. Professor Eggert said government needs to find a way to mandate loan modifications : “The challenge is to figure out what the leverage should be,” he said. ” One possibility would be to revive a previously rejected congressional plan that would allow bankruptcy court judges to order loan modifications. That would motivate loan servicers to work with borrowers to avoid the borrower filing bankruptcy, ” he added. “The purpose of loan modifications is too mitigate losses to the investor by keeping the borrower in the home,” Eggert said. “It’s not like it’s charity to the borrower.” Read story…

Professor Kurt Eggert moderated a panel entitled, “Inside the Mind of Consumers,” addressing behavioral economics and consumer protection at the University of Houston Law Center’s conference “Teaching Consumer Law .”