26 billion dollar settlement

[TexasWife25]

Obama and states, sue banks, and win.

"More than just an attempt to aid consumers and stabilize the housing market, government officials cast the settlement as an effort to finally hold banks accountable for their misdeeds, more than three years after the mortgage collapse brought on a full-scale financial crisis. "- POTUS

“The effect of this settlement will be catalytic,” Shaun Donovan, the secretary of Housing and Urban Development, said in an interview.

He predicted it would spur more loan modifications through existing government programs as well as principal reductions — when loan debt is written down for borrowers who owe more than their home is worth — as well as additional mortgage relief provided by banks. "


http://www.nytimes.com/2012/02/10/business/states-negotiate-26-billion-agreement-for-homeowners.html

 

[Aggressive One]

Don't believe what the media tells you. The government has now set a price for forgeries and fabricating documents. It’s $2000 per loan. This is a rounding error compared to the chain of title problem these systematic practices were designed to circumvent. The cost is also trivial in comparison to the average loan, which is roughly $180k, so the settlement represents about 1% of loan balances. It is less than the price of the title insurance that banks failed to get when they transferred the loans to the trust. It is a fraction of the cost of the legal expenses when foreclosures are challenged. It’s a great deal for the banks because no one is at any of the servicers going to jail for forgery and the banks have set the upper bound of the cost of riding roughshod over 300 years of real estate law.

 

[bumlicker]

what a crock!!

of shit that is it will just go in the banks pocket or the feds pocket just obama spending OUR money AGAIN!!!

 

[jeninflorida]

Obama and states, sue banks, and win.

"More than just an attempt to aid consumers and stabilize the housing market, government officials cast the settlement as an effort to finally hold banks accountable for their misdeeds, more than three years after the mortgage collapse brought on a full-scale financial crisis. "- POTUS

“The effect of this settlement will be catalytic,” Shaun Donovan, the secretary of Housing and Urban Development, said in an interview.

He predicted it would spur more loan modifications through existing government programs as well as principal reductions — when loan debt is written down for borrowers who owe more than their home is worth — as well as additional mortgage relief provided by banks. "


http://www.nytimes.com/2012/02/10/business/states-negotiate-26-billion-agreement-for-homeowners.html

Awesome, the tax payer gets another Government bill.

 

[Aggressive One]

Awesome, the tax payer gets another Government bill.

Jen is right. That $26 billion is actually $5 billion of bank money and the rest is your money. The mortgage principal writedowns are guaranteed to come almost entirely from securitized loans, which means from investors, which in turn means taxpayers via Fannie and Freddie, pension funds, insurers, and 401ks. Refis of performing loans also reduce income to those very same investors.

 

[TexasWife25]

The 26 billion is in no way, the end of investigating or pursuing the banks. The settlement specifically says that the federal government and states, hold the right to continue to look into bank misconduct, and pursue further action.