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Court approves $26 billion foreclosure settlement
By Les Christie@CNNMoneyApril 6, 2012: 4:41 PM
NEW YORK (CNNMoney) -- A federal judge approved the $26 billion settlement deal reached between the nation's five largest mortgage lenders and the attorneys general of 49 states and the District of Columbia over foreclosure processing abuses.
Judge Rosemary Collyer in the U.S. District Court for the District of Columbia approved consent judgments with Bank of America (BAC, Fortune 500), Citibank (C, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Wells Fargo (WFC, Fortune 500), and Ally Financial (the former GMAC) late Thursday.
The approval clears the way for the banks to compensate homeowners who may have been impacted by the so-called robo-signing scandal, in which bank employees signed hundreds of documents a day attesting to facts that they had little or no knowledge of.
Under the settlement, the banks committed at least $17 billion toward modifying mortgages for delinquent borrowers. The modifications will include large principal reductions of as much as $100,000 or more for roughly one million homeowners who are underwater on their mortgages and behind on payments.
The $26 billion crapshoot
Another $3.7 billion will go toward refinancing mortgages for borrowers who are current on their payments. This is supposed to help some 750,000 borrowers take advantage of historic low interest rates.
The banks will also pay $5 billion in fines to the states and the federal government, the only hard money involved in the deal. Out of that fund will come payments of $1,500 to $2,000 to homeowners who lost their homes to foreclosure. Those payments will total $1.5 billion, according to the consent agreement. Other funds will be paid to legal aid and homeowner advocacy organizations to help individuals facing foreclosure or experiencing servicer abuses.
http://money.cnn.com/2012/04/06/real...m?iid=SF_PF_LN
By Les Christie@CNNMoneyApril 6, 2012: 4:41 PM
NEW YORK (CNNMoney) -- A federal judge approved the $26 billion settlement deal reached between the nation's five largest mortgage lenders and the attorneys general of 49 states and the District of Columbia over foreclosure processing abuses.
Judge Rosemary Collyer in the U.S. District Court for the District of Columbia approved consent judgments with Bank of America (BAC, Fortune 500), Citibank (C, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Wells Fargo (WFC, Fortune 500), and Ally Financial (the former GMAC) late Thursday.
- Court approves $26 billion foreclosure settlement
- Foreclosures fall, but there's a 'rising tide' ahead
- Rage grows over mortgage deal
- BofA to slash mortgage balances by $100,000 or more
- 'How we're losing our multi-million dollar home'
The approval clears the way for the banks to compensate homeowners who may have been impacted by the so-called robo-signing scandal, in which bank employees signed hundreds of documents a day attesting to facts that they had little or no knowledge of.
Under the settlement, the banks committed at least $17 billion toward modifying mortgages for delinquent borrowers. The modifications will include large principal reductions of as much as $100,000 or more for roughly one million homeowners who are underwater on their mortgages and behind on payments.
The $26 billion crapshoot
Another $3.7 billion will go toward refinancing mortgages for borrowers who are current on their payments. This is supposed to help some 750,000 borrowers take advantage of historic low interest rates.
The banks will also pay $5 billion in fines to the states and the federal government, the only hard money involved in the deal. Out of that fund will come payments of $1,500 to $2,000 to homeowners who lost their homes to foreclosure. Those payments will total $1.5 billion, according to the consent agreement. Other funds will be paid to legal aid and homeowner advocacy organizations to help individuals facing foreclosure or experiencing servicer abuses.
http://money.cnn.com/2012/04/06/real...m?iid=SF_PF_LN