A bank can't place a home in jeopardy of foreclosure simply because it is underwater - sounds reasonable
a modified or restructured commercial loan shall be removed from non-accrual status if the borrower demonstrates the ability to perform on such loan over a maximum period of 6 months
A bank can't place a home in jeopardy of foreclosure if the owner is still able to make the mortgage - sounds reasonable
a new appraisal on a performing commercial loan shall not be required unless an advance of new funds is involved
A bank can't place a business in jeopardy of foreclosure unless the owner wants to borrow more money - sounds reasonable
Am I missing something?
You’re missing a lot.
This has nothing to do with being able to foreclose or not.
This has everything to do with a bank’s solvency, and whether the FDIC needs to step in and close them under the law.
Previously this law allows the bank to seriously inflate the assets on their books. Loans backed by collateral are counted very differently than loans with no collateral.
This is all fine if you don’t care about sound banking.
Oh and obviously the executives of these banks get bonuses based on these numbers. They have every incentive to lie about their balance sheets, and now it’s not even a crime!
Bailouts will be needed to fix this when it all inevitably blows up, and yes, stopping bailouts was what the tea party was all about.
“Am I missing something?”
Nope. The OP read into this something that doesn’t exist.