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Fri Feb 22, 2013, 09:37 AM

 

Banks find way to benefit from robo-signing scandal

Source: Tampa Bay Times

Big banks are finding a way to benefit from what was supposed to be their punishment in the robo-signing scandal.

In Florida, they have spent 75 percent of $7.7 billion in settlement outlays approving short sales and forgiving home-equity loans, earning credit for debts they were unlikely to collect or sales that would have happened anyway, a monitor's report released Thursday shows. Only about 15 percent of the money has gone toward principal reductions or refinancings that would keep Floridians in their homes, the report states.

"This is providing very little actual relief to consumers," St. Petersburg foreclosure attorney Matt Weidner said. "It's not keeping people in Florida in their homes. It's writing off phantom debt (banks) weren't collecting anyway."

Bank of America spokesman Rick Simon said the spending provided "meaningful relief to borrowers by eliminating debt." More than 100,000 Floridians have been offered an average of $75,000 in debt forgiveness or other aid, and thousands of potential loan modifications are still being processed, according to the report based on bank data. But consumer advocates and attorneys have criticized the relief as sidestepping the settlement's goals. Since April, the report said, Floridians have filed nearly 600 complaints over modifications, customer service and other issues.

more at link....

Read more: http://www.tampabay.com/news/business/realestate/banks-find-way-to-benefit-from-robo-signing-scandal/1276068



Calling Liz Warren......

4 replies, 1456 views

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Reply Banks find way to benefit from robo-signing scandal (Original post)
SugarShack Feb 2013 OP
nineteen50 Feb 2013 #1
Enrique Feb 2013 #3
OKNancy Feb 2013 #2
Enrique Feb 2013 #4

Response to SugarShack (Original post)

Fri Feb 22, 2013, 10:57 AM

1. More of the same

the paid for congress delivers again.

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Response to nineteen50 (Reply #1)

Fri Feb 22, 2013, 12:08 PM

3. this wasn't Congress

this was the Justice Department and the White House.

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Response to SugarShack (Original post)

Fri Feb 22, 2013, 11:33 AM

2. not locking this but a FYI

this is over 12 hours old. Be sure to check the time stamp of the article in future posts.

Thanks, Nancy ( LBN host)

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Response to SugarShack (Original post)

Fri Feb 22, 2013, 12:11 PM

4. oops!

the government ACCIDENTALLY designed the settlement in a way that it would help the banks and not the homeowners. What a big MISTAKE. They must REGRET that it turned out in a way THEY DID NOT INTEND and COULD NOT FORSEE.

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