HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Topics » Economy & Education » Economy (Group) » Whatís Inside the $25 Bil...
Introducing Discussionist: A new forum by the creators of DU

Tue Feb 14, 2012, 02:01 PM

Whatís Inside the $25 Billion Mortgage Settlement: An Early Look

If you click on each underlined heading of the article, a PDF opens.
I would be very interested in how y'all see this.
(Thanks to Ms. Smiler for the heads up on this)

"Federal and state officials havenít made public the $25 billion settlement agreement that they reached with five large banks. As the Journal noted, the exact wording was still being finalized even as officials announced the deal on Thursday morning.

Officials said the final agreement would be made public once itís filed in the U.S. District Court in Washington, D.C., but that might not happen for a few weeks. Until then, here are some of the recent drafts of the settlement. The settlement includes several different components, some of which officials could release before the agreement is submitted to court.

The draft documents obtained by the Journal show the many moving pieces that were the product of more than one year of discussions. As indicated, the documents are draft copies that were issued on Jan. 19, just as state attorneys general were briefed on the deal. Itís not clear how much the terms have changed since these drafts were written:"

http://blogs.wsj.com/developments/2012/02/13/whats-inside-the-25-billion-mortgage-settlement-an-early-look/

3 replies, 1048 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 3 replies Author Time Post
Reply Whatís Inside the $25 Billion Mortgage Settlement: An Early Look (Original post)
dixiegrrrrl Feb 2012 OP
ms.smiler Feb 2012 #1
ms.smiler Feb 2012 #2
dixiegrrrrl Feb 2012 #3

Response to dixiegrrrrl (Original post)

Tue Feb 14, 2012, 05:31 PM

1. I uploaded the 42 pages to my Scribd account.

http://www.scribd.com/doc/81632035/81588406-Settlement-Term-Sheet-Settlement-Agreement-Feb-2012

Housing Agency's Reserves at Risk

http://online.wsj.com/article/SB10001424052970204795304577221222265037002.html?mod

The estimates by the White House's Office of Management and Budget show that the FHA's capital reserves, which stood at $4.7 billion in October, would be wiped out in the coming year, forcing the agency to seek nearly $700 million from the U.S. Treasury.

FHA officials said they could collect as much as $1 billion from last week's settlement between federal agencies, 49 state attorneys general, and five banks as a result of false claims submitted to the agency.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to dixiegrrrrl (Original post)

Fri Feb 17, 2012, 12:31 AM

2. "US taxpayers to subsidise $40bn housing settlement"

Please Google the headline to access the article unless you are a subscriber.

http://www.ft.com/cms/s/0/29834f52-582b-11e1-bf61-00144feabdc0.html#ixzz1mc5Ab9Uz

US taxpayers are expected to subsidise the $40bn settlement owed by five leading banks over allegations that they systematically abused borrowers in pursuit of improper home seizures, the Financial Times has learnt.

snip
However, a clause in the provisional agreement Ė which has not been made public Ė allows the banks to count future loan modifications made under a 2009 foreclosure-prevention initiative towards their restructuring obligations for the new settlement, according to people familiar with the matter. The existing $30bn initiative, the Home Affordable Modification Programme (Hamp), provides taxpayer funds as an incentive to banks, third party investors and troubled borrowers to arrange loan modifications.

snip
BofA, for instance, will be able to use future modifications made under Hamp towards the $7.6bn in borrower assistance it is committed to provide under the settlement. Under Hamp, the bank will receive payments for averting borrower default and reimbursement from taxpayers for principal written down.

snip
But people familiar with the matter told the FT that state officials involved in the talks had had misgivings about allowing the banks to use taxpayer-financed loan restructurings as part of the settlement. State negotiators wanted the banks to modify mortgages using Hamp standards, which are seen as borrower-friendly, but did not want the banks to receive settlement credit when modifying Hamp loans. Federal officials pushed for it anyway, these people said.


Reply to this post

Back to top Alert abuse Link here Permalink


Response to ms.smiler (Reply #2)

Fri Feb 17, 2012, 12:06 PM

3. Sadly, I expected this.

So not only are the banks allowed to get away with robbery, they are encouraged to pillage once again.
How can ANYONE not realize the entire system is totally corrupt?

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread