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By Kate Berry
JUL 23, 2010 5:06pm ET

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A combination of historically low interest rates and reduced competition are fattening home lenders' profit margins, making up for lost volume.

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What the Mortgage Settlement Means to Banks
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The $25 billion mortgage robo-signing settlement is:
Political extortion from the banks in an election year
A slap on the wrist — the banks put reserves away for this long ago, they won't even feel it
A source of relief for both banks and homeowners that could help the housing market and economy recover

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