STOCK MARKET WATCH -- Thursday, 30 August 2012

[Demeter]

5. Mortgage customers of 5 large banks get big offers to lower their payments

http://www.cleveland.com/business/index.ssf/2012/08/mortgage_customers_of_five_lar.html

Thousands of homeowners nationwide are getting jaw-dropping offers from five of the largest mortgage lenders. The unsolicited letters and phone calls from Chase, Ally/GMAC Mortgage, Citibank, Wells Fargo and Bank of America are the mortgage equivalent of winning the lottery even when you weren't playing. The banks are offering customers no-strings-attached deals to drastically reduce their interest rates and, in some cases, slice tens of thousands from their principal. Customers don't have to apply, sign tons of paperwork or pay any closing costs or any fees.

"Someone who is getting something out of the blue could feel this is too good to be true," said Dan Tierney, spokesman for the Ohio Attorney General's Office.

However, the offers are part of the five banks' settlements with federal and state regulators earlier this year. In Ohio, the five companies agreed to commit $90 million in interest savings for borrowers who refinance and $102 million to reduce the principal and payments on homeowners' loans...