Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Fed settles mortgage abuse with 10 banks

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » General Discussion Donate to DU
 
No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-08-13 03:51 AM
Original message
Fed settles mortgage abuse with 10 banks

Fed settles mortgage abuse with 10 banks
Published: Jan. 7, 2013 at 2:11 PM


WASHINGTON, Jan. 7 (UPI) -- The U.S. Federal Reserve said 10 banks agreed to pay $8.5 billion to close down a foreclosure fraud and lending abuse review.

The central bank said borrowers could be eligible for payments of "hundreds of dollars up to $125,000, depending on the type of possible servicer error."

In the settlement, $3.3 billion is to go to direct payments to eligible borrowers and $5.2 billion is to be used in other forms of mortgage assistance, such as loan modification, the Fed said.

The Fed and the Office of the Comptroller of the Currency had ordered the 10 banks to undertake loan reviews after widespread foreclosure abuses were discovered as banks tried to process a mountain of foreclosures that arose during the recent recession.

Many banks hired so-called "foreclosure mills," that went through the foreclosure process so quickly, they were accused of cheating homeowners of due process entitled by law.

The loan reviews were set up for banks to self-police the loans for errors. But the reviews proved time consuming and costly. That prompted the settlement in which "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 Fed said.

The agreement covers more than 3.8 million borrowers whose homes were in foreclosure in 2009 and 2010.

The banks involved include Aurora, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, Wells Fargo, and Bank of American which announced Monday that it had reached a $10 billion settlement with the Federal National Mortgage Association to close down a dispute over mortgages that did not meet Fannie Mae's standards.

In a statement released Monday, Fannie Mae said BofA would buy back 30,000 mortgage loans originated from Jan. 1, 2000, through Dec. 31, 2008, at "par plus accrued interest," spending about $6.75 billion to do so, and pay $3.55 billion to cover bank fees.

<snip>




Read more: http://www.upi.com/Business_News/2013/01/07/Fed-settles...


Self-police.

Throwing people out of their homes.

No words.
Refresh | 0 Recommendations Printer Friendly | Permalink | Reply | Top
Enthusiast Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-08-13 06:06 AM
Response to Original message
1. Key words: banks agreed and self-police
Remember when Nixon was pilloried for saying, "It's not a crime if the President does it."

Oh, how things have changed. Now it's not a crime if the HUGE banks do it.

This has contributed to ruining the nation. And make no mistake, the nation is ruined.
Printer Friendly | Permalink | Reply | Top
 
No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-08-13 08:27 AM
Response to Reply #1
2. Nixon could have pardoned himself. Banks don't have to bother. .
Printer Friendly | Permalink | Reply | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Jul 24th 2014, 09:39 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC