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Mon Jan 7, 2013, 11:36 AM

10 Banks Agree To Pay Billions For Wrongful Foreclosures

Source: TPM


PEMA LEVY 11:31 AM EST, MONDAY JANUARY 7, 2013

Ten major banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, have agreed to pay $8.5 billion to homeowners who were wrongfully foreclosed on.

From the announcement from the Office of the Comptroller of the Currency and the Federal Reserve:

The sum includes $3.3 billion in direct payments to eligible borrowers and $5.2 billion in other assistance, such as loan modifications and forgiveness of deficiency judgments. The payments involve mortgage servicers operating under enforcement actions issued in April 2011 by the OCC, the Federal Reserve, and the Office of Thrift Supervision. The agreement ensures that more than 3.8 million borrowers whose homes were in foreclosure in 2009 and 2010 with the participating servicers will receive cash compensation in a timely manner.

Eligible borrowers are expected to receive compensation ranging from hundreds of dollars up to $125,000, depending on the type of possible servicer error.


-30-

Read more: http://livewire.talkingpointsmemo.com/entry/10-banks-agree-to-pay-billions-for-wrongful

18 replies, 2353 views

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Arrow 18 replies Author Time Post
Reply 10 Banks Agree To Pay Billions For Wrongful Foreclosures (Original post)
DonViejo Jan 2013 OP
djean111 Jan 2013 #1
2pooped2pop Jan 2013 #3
dixiegrrrrl Jan 2013 #6
djean111 Jan 2013 #8
1983law Jan 2013 #14
Taxee Jan 2013 #2
Richard Cleary Jan 2013 #9
lunatica Jan 2013 #11
Morganfleeman Jan 2013 #16
Stuart G Jan 2013 #4
jtuck004 Jan 2013 #5
dixiegrrrrl Jan 2013 #10
jtuck004 Jan 2013 #12
dixiegrrrrl Jan 2013 #13
Morganfleeman Jan 2013 #17
Sunlei Jan 2013 #7
Scurrilous Jan 2013 #15
Newsjock Jan 2013 #18

Response to DonViejo (Original post)

Mon Jan 7, 2013, 11:40 AM

1. Is it silly to hope the compensation will be paid out real quick?

Without a lot of red tape and shuffling by the banks?

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Response to djean111 (Reply #1)

Mon Jan 7, 2013, 11:44 AM

3. don't expect anything at all.

I believe the info that people filled out to be cosidered for this was given directly to the banks to decide.

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Response to djean111 (Reply #1)

Mon Jan 7, 2013, 12:16 PM

6. Here is your answer:

"As a result of this agreement, the participating servicers would cease the Independent Foreclosure Review, which involved case-by-case reviews, and replace it with a broader framework allowing eligible borrowers to receive compensation significantly more quickly.

The OCC and the Federal Reserve accepted this agreement because it provides the greatest benefit to consumers subject to unsafe and unsound mortgage servicing and foreclosure practices during the relevant period in a more timely manner than would have occurred under the review process.

Eligible borrowers will receive compensation whether or not they filed a request for review form,
and borrowers do not need to take further action to be eligible for compensation.


A payment agent will be appointed to administer payments to borrowers on behalf of the servicers.
Eligible borrowers are expected to be contacted by the payment agent by the end of March with payment details.
Borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment.
In addition, the servicersí internal complaint process will remain available to borrowers. "

http://www.occ.gov/news-issuances/news-releases/2013/nr-ia-2013-3.html

Important note:
This explains why Bank of America is now selling off its servicing business.

http://www.democraticunderground.com/10022148224

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Response to dixiegrrrrl (Reply #6)

Mon Jan 7, 2013, 01:01 PM

8. Thank you!

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Response to djean111 (Reply #1)

Mon Jan 7, 2013, 02:04 PM

14. Not stopping me from moving forward

 

n/t

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Response to DonViejo (Original post)

Mon Jan 7, 2013, 11:43 AM

2. Where did the money go?

 

These bankers stole our tax money and even Obama can't figure out how to make them help people with real mortgage troubles. He did a good job increases my ss tax but just can't seem to make banks pay. Pelosi for president, she's willing to lie her way to the top and can handle these bankers.

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Response to Taxee (Reply #2)

Mon Jan 7, 2013, 01:12 PM

9. SS Taxes.

Obama did not increase your Social Security taxes. The payroll tax holiday expired and the tax rates went back to what they were before the holiday. Perfectly legal, and it was not Obama's doing.

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Response to Taxee (Reply #2)

Mon Jan 7, 2013, 01:35 PM

11. Pelosi is willing to lie her way to the top?

What the hell does that mean?

Never mind. I see he/she is gone.

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Response to Taxee (Reply #2)

Mon Jan 7, 2013, 02:41 PM

16. Don't think so

As stated above, Obama didn't raise your taxes, the cut expired. It sucks but letting it expire was the right thing to do as it created a link between deficit spending and SS.

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Response to DonViejo (Original post)

Mon Jan 7, 2013, 12:00 PM

4. k & r thanks for posting..... nt

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Response to DonViejo (Original post)

Mon Jan 7, 2013, 12:16 PM

5. Foreclosed Upon Americans Get Chump Change While Banks Erode Regulations


All sorts of ways to write that headline...


...

There are an estimated 4.4 million households who would qualify for such a settlement, which means they all get chump change after banks illegally took their homes. Of those 4.4 million households, initially only 200,000, now estimated at 323,000, bothered to file with an independent review of their plight at all.

...
The banks complained the review process was too expensive for them, yet the game was rigged from the beginning. Banks themselves turned each mortgage case review into a rule hell paper chase. They hired the $250/hr consultants, costing them $1.5 billion. The banks along with the OCC and the Fed set up so many rules and a maze of conditions that took at least 20 hours per case to even start examining systemic mortgage loan abuses. Banks did this to bury any finding of wrong doing. Homeowners did not even submit their claims due to the rigging of the game for foreclosure reviews. Their house was gone, seized and the banks are going to get 100% away with it all.

Now we have yet another slap on the wrist settlement when the real agenda is to stop any further review of the top 14 banks' mortgage abuses. The House Oversight Committee has requested a review of the settlement (pdf), but this is a review request, there is no hold on a deal if the Federal Reserve and Currency Comptroller do not grant a delay in this settlement.
...

Economic Populist, here.


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Response to jtuck004 (Reply #5)

Mon Jan 7, 2013, 01:31 PM

10. pls see my post above and the links

I have spent the last hour following a paper trail about this settlement.

At least one bank, Bank of America, is selling off its mortgage servicing rights, which is the only part of the mortgage it held onto.
Plus it had to buy back the shitty mortgages from Fannie and Freddie Mac.
At this point in time, subject to new information, I see this as positive, in that the govrnment is making the banks buy back the mortgages.

As far as giving the homeowners a fair shake, I dunno yet.
my post above emphasizes the improved speed of settling and reading the OCC link is worth the time.

It appears, btw, that there is now a real estate bubble re-forming of companies and trusts buying up foreclosed homes to create rentals.
That might..just might...help with the empty house/condo problem.

What I would really like to see is each county suing the banks for the unpaid real estate fees which are owed, and which the banks escaped paying thru MERS.

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Response to dixiegrrrrl (Reply #10)

Mon Jan 7, 2013, 01:39 PM

12. These are banks that paid $20 billion in _bonuses_ - bonuses above better salaries than perhaps 80%


of Americans get, in one year (this being the lowest in a long time) people taking home for mad money over Christmas 3 times what many of these homeowners paid for their homes over a lifetime. And the misery and tragedy of the aftermath, including the suicides, heart attacks and lives destroyed through this fraud are never tied to them as they should be.

There is no possible way these thieves and pimps can stay in their Banks and our of prison and it be fair.

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Response to jtuck004 (Reply #12)

Mon Jan 7, 2013, 01:50 PM

13. Yeah...just imagine what an honest accounting would look like.

All these "valuations" of banks is based on what they say their debt is worth, to them.

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Response to dixiegrrrrl (Reply #13)

Mon Jan 7, 2013, 02:45 PM

17. That's not the banks' fault

That's FASB's fault, they establish what are generally accepted accounting principles. The idea is if you have to mark your assets to market, you should have to mark your liabilities to market. The rules need to change but it is what it is now.

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Response to DonViejo (Original post)

Mon Jan 7, 2013, 12:47 PM

7. a couple hundred dollars? They should give them the homes back free for the nightmare of stress.

My morgage has been held by both Bank of America and Wells Fargo over these past 15 years. They sell the morgages to each other.

Banks wait for payments to become late or no required homeowners insurance, anything to take the home away after they enjoyed mainly interest payments in the first years of every morgage.

Even Wells Fargo now freaks out because I'm packing in everything I can afford towards the principle. God willing to stay healthy enough to work, I'm gonna pay this house off way early. They keep pushing a refinance so the loan would be extended for decades, they would get thousands in fees, give the bank more chances to snatch it back.

What's 'hundreds of dollars' to a family whos bank turned them out into the street, had the sheriffs place their stuff on the curb.? The banks let those forclosed homes rot empty for years.

Banks should be forced to "make whole" the entire suffering of the foreclosed.

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Response to DonViejo (Original post)

Mon Jan 7, 2013, 02:37 PM

15. Good news!

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Response to DonViejo (Original post)

Mon Jan 7, 2013, 08:11 PM

18. Just the cost of doing business

Where are the corporate death penalties, the prison terms for those responsible? This will happen again and again until the penalty matches the crime.

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