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Showing Original Post only (View all)Banks, states reach $26 billion settlement [View all]
http://www.marketwatch.com/story/banks-states-reach-26-billion-settlement-2012-02-09?link=MW_home_latest_newsAfter more than a year of negotiations, the biggest banks, states and federal authorities on Thursday announced the largest housing settlement ever -- for more than $26 billion -- over foreclosure practices that is expected to offer relief to more than one million U.S. homeowners.
State attorneys-general and federal officials have been in discussions for more than a year with banks over the robo-signing crisis - the practice of assigning bank employees to rapidly approve numerous foreclosures with only cursory glances at the glut of paperwork to determine if all the documents are in order.
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Of the $26 billion in the deal with the five banks, $17 billion must be spent by the banks to assist struggling homeowners. Of that amount, 60% must be employed to reduce the amount owed by troubled borrowers, known as principle reduction. The amount must be spent within three years, or banks will need to make cash payments to regulators.
A government official said he believes the vast majority of principal write-downs will take place on loans sitting on bank portfolios because they will receive the largest credit against their obligations under the settlement to do so.
State attorneys-general and federal officials have been in discussions for more than a year with banks over the robo-signing crisis - the practice of assigning bank employees to rapidly approve numerous foreclosures with only cursory glances at the glut of paperwork to determine if all the documents are in order.
...
Of the $26 billion in the deal with the five banks, $17 billion must be spent by the banks to assist struggling homeowners. Of that amount, 60% must be employed to reduce the amount owed by troubled borrowers, known as principle reduction. The amount must be spent within three years, or banks will need to make cash payments to regulators.
A government official said he believes the vast majority of principal write-downs will take place on loans sitting on bank portfolios because they will receive the largest credit against their obligations under the settlement to do so.
Not one indictment.
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"Not one indictment." Hardly surprising, the bankers buy and sell politicians exactly
cstanleytech
Feb 2012
#2
Chill wind, that $1,500 to $2,000 should be used by the homeowner as a retainer for competent legal
ms.smiler
Feb 2012
#9
Your payments have nothing to do with the party who brought a foreclosure action against you.
ms.smiler
Feb 2012
#30
Record Shadow Housing Inventory, And How Obama May Have Just Popped The Consumer Spending Bubble
Roland99
Feb 2012
#33
heyhey now, don't be so demanding!! we're contemplating a 0,01 % tax on derivatives transactions
BelgianMadCow
Feb 2012
#43
I say we hand over banking to bureaucrats and let financiers borrow and bet their own money.
Festivito
Feb 2012
#45
Well, well, well...looks like business will be picking up for the criminal class.
Safetykitten
Feb 2012
#38
The "fix" is in: National Mortgage Settlement is a done deal-Crime Pays! Great Bizness Model!
solarman350
Feb 2012
#42