The recently issued report from the court appointed monitor of the settlement agreement between the 5 leading mortgage loan servicers and the 49 state attorneys general contained some very interesting information.

Many observers have complained that the servicers have taken too much advantage of being able to get some credit against the settlement funds for eliminating second mortgages which, in reality, had no value anyway, calling this the “second mortgage loophole.” But with the credit for eliminating or reducing second mortgages only 10% of the loan amount, is this something we really need to worry about?