Thursday, February 09, 2012

Settlement announced on foreclosure, mortgage fraud

State and federal officials on Thursday announced a settlement of $26 billion with five of the nation’s banks over flawed and fraudulent foreclosure practices that affected several million homeowners and became commonplace after the housing boom turned to bust in recent years. It is the largest government-industry settlement in more than a decade.

The deal marks the culmination of more than 16 months of negotiation between lenders and a collection of state and federal officials. It aims to help troubled borrowers by requiring the banks to reduce the amount borrowers owe on their mortgages, lowering their interest rates and paying restitution to homeowners who suffered mortgage-related abuses. It will force lenders to revamp how they interact with struggling mortgage holders and bar them from trying to foreclose on borrowers while simultaneously negotiating mortgage modifications.
Read the rest here.

This is basically a traffic ticket for one of the biggest cases of mass criminal fraud in history. Once again I feel obliges to say it...



The Archer of the Forest said...

$2000 a person for an illegal foreclosure...yeah, there's some justice for ya.

Visibilium said...

Condo flippers are getting their payday.

Jason said...

While I'm no friend of banks, I think it's more accurate to say that usurious banks and lenders are the enemy. That might be redundant, but were there banks that actually lended and operated according to Biblical principles there would be none of these fiascos.