"Credit is not something you can see, feel, hear, smell, or taste, but it can have a big effect on the tangible items of your life, like a car or a house. Your credit helps determine what (and if) you can buy, and how much a loan is going to cost you in interest."
Here is the other piece the banks have been blind to--not only do they refuse to help homeowners but they are ruining their credit. Some may say well too bad so sad, but at some point the banks need customer's to borrow money again. There will be a very large number of unbanked and unwilling to deal with banks ever again.