Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

2/11/2012 (2 years ago)

Catholic Online (www.catholic.org)

Settlement only pays $2,000 for those unjust foreclosed upon

Forty-nine states have accepted a $25 billion foreclosure-abuse settlement with the five largest mortgage lenders. While coming as welcome news to many, primarily those "underwater" in their mortgage payments, it only pays $2,000 to those already wrongly foreclosed upon.

During the financial and housing crisis, home values sank and millions of Americans edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadn't read or used fake signatures to speed foreclosures, in an action known as 'robo-signing.'

During the financial and housing crisis, home values sank and millions of Americans edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadn't read or used fake signatures to speed foreclosures, in an action known as "robo-signing."

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

2/11/2012 (2 years ago)

Published in Business & Economics

Keywords: Foreclosure-abuse settlement, underwater mortgages, Oklahoma, Mortgage payments, robo-signing


LOS ANGELES, CA (Catholic Online) - The majority of the deal requires the banks to reduce some loans and refinance mortgages for underwater borrowers. Oklahoma was the only state holdout to the agreement.

President Obama hailed the agreement as a "landmark settlement" that would "begin to turn the page on an era of recklessness" while sending relief to strapped homeowners.

Under the agreement, five major banks, Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial will reduce loans for nearly one million households.

However, those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement. For homeowners who were improperly foreclosed upon, the banks will cough up checks of $2,000 to about 750,000 Americans. The banks have three years to fulfill the terms of the deal.

Critics say the proposed deal doesn't go far enough, arguing for a thorough investigation of potentially illegal foreclosure practices before a settlement is hammered out.

The agreement was designed more toward homeowners who are struggling to make payments currently, who still have possession of their homes. The agreement requires the banks to commit a substantial amount of money toward changing loan terms.

At least $10 billion will go toward reducing the principal for borrowers who are delinquent or underwater borrowers at risk of default and at least $3 billion will go toward refinancing. Other payments will go toward state governments and the federal government to "repay public funds lost as a result of servicer misconduct," according to the Justice Department.

President Obama acknowledges that no single action would heal the housing market, but described the settlement as an important step that would address alleged abuses by mortgage lenders, such as using fake signatures in the foreclosure process.

"These practices were plainly irresponsible, and we refused to let them go unanswered," Obama said. 

Oklahoma, the lone state opposed to the agreement, will receive no money. That state's attorney general had opposed the massive fine included in the settlement, and reportedly was concerned the penalty went beyond the scope of the original investigation.

Attorney General Eric Holder said the deal would "hold mortgage servicers accountable for abusive practices."

During the financial and housing crisis, home values sank and millions of Americans edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadn't read or used fake signatures to speed foreclosures, in an action known as "robo-signing."

As part of the agreement, the 49 states have said they won't pursue civil charges related to these types of abuses. Homeowners can still sue lenders in civil court on their own, and federal and state authorities can pursue criminal charges.

.

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for September 2014
Mentally disabled:
That the mentally disabled may receive the love and help they need for a dignified life.
Service to the poor: That Christians, inspired by the Word of God, may serve the poor and suffering.



Comments


More Business & Economics

The Chinese are coming! E-commerce giant Alibaba cleans house with its initial public offering Watch

Image of Chinese e-commerce giant Alibaba has raised more than $21 billion with its IPO, with stocks priced at $68 per share, signaling a strong demand for the tech-giant.

By Catholic Online (NEWS CONSORTIUM)

The Chinese e-commerce giant Alibaba has made the largest U.S.-listed initial public offering (IPO) of all time, with stocks priced at $68 per share, signaling a strong demand. LOS ANGELES, CA (Catholic Online) - Only large investors, like hedge funds, can ... continue reading


Bottom of the Barrel - Thanks to business tax, the U.S. is Number 32 in the world Watch

Image of A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high

By Catholic Online (NEWS CONSORTIUM)

A new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. So says the Wall Street Journal, the nation's leading journal on business. The White House and Sen. Charles Schumer (D., N.Y.) will attempt ... continue reading


Unemployment rate for black Americans at 11.4 percent, more than double the rate for whites Watch

Image of There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap.

By Catholic Online - (NEWS CONSORTIUM)

There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap. Figures show that while unemployment nationwide is 6.1 percent, the unemployment rate for black Americans at 11.4 percent. LOS ANGELES, CA ... continue reading


A record 92,269,000 Americans jobless for month of August Watch

Image of So - there you have it: Things are STILL tough all over.

By Catholic Online - (NEWS CONSORTIUM)

It never went away, come rain or come shine form the past hot summer months . Many Americans remain idle and without work. According to the Bureau of Labor Statistics, a record 92,269,000 Americans 16 years of age and older didn't participate in the labor force ... continue reading


We owe HOW MUCH? New report reveals U.S. government owes $6 trillion to foreign entities Watch

Image of Foreign interests, including nations and businesses, own more than $6 trillion of U.S. government debt.

By Catholic Online (NEWS CONSORTIUM)

Foreign interests now own more than $6 trillion in U.S. government debt, a recent Treasury Department report on major foreign debt holders revealed. LOS ANGELES, CA (Catholic Online) - As of the end of June 2014, foreign-held debt totaled $6,013,200,000,000 in U.S. ... continue reading


Are you ready? Economic analysts predict bear market by end of 2014 Watch

Image of Economic analysts are predicting a significant drop in the market, which may be as high as 60%.

By Catholic Online (NEWS CONSORTIUM)

Two financial experts announced on August 27 that markets may face a fall of up to 60% by the end of 2014. LOS ANGELES, CA (Catholic Online) - David Tice, the president of Tice Capital and founder of the Prudent Bear Fund, reported that a jolt to international ... continue reading


Oh really Obama? President claims economic success while population dependent on food stamps hit all time high Watch

Image of The number of Americans on food stamps has not decreased since 2011, despite claims from President Obama that the U.S. economy has recovered under his policies.

By Catholic Online (NEWS CONSORTIUM)

Democrats are facing a tough midterm election, and with less than three months to go the party is scrambling to prop up the image of the U.S. economy in the minds of disgruntled voters. LOS ANGELES, CA (Catholic Online) - Yet one of the quickest shorthand ... continue reading


Here comes a boom! $7 trillion in untapped funds to flood global market Watch

Image of A report suggests that corporations and equity firms hold nearly $7 trillion in cash reserves that could bolster the world's economy.

By Catholic Online (NEWS CONSORTIUM)

A new boost to the global economic recovery may happen soon, as corporate giants and private equity firms prepare to tap into cash reserves of $7 trillion, stored since the current financial crisis began back in 2008. LOS ANGELES, CA (Catholic Online) - Investors ... continue reading


OBAMA PARTIES AS ROME BURNS: U.S. wages down by 23 percent - while president takes a vacation Watch

Image of The timing of Obama's swank vacation has even the president's supporters worried.

By Catholic Online (NEWS CONSORTIUM)

Lots of negative news to go around - Ebola seems to be spreading worldwide, Islamic State is increasing its stranglehold on Iraq, a much beloved comedian and screen actor is found dead at home, an apparent suicide - U.S. President Barack Obama is in Martha's ... continue reading


Religious orders NEED to understand economics Watch

Image of A letter from two high-ranking Catholic officials requests that religious orders gain a better understanding of finance and economics.

By Catholic Online (NEWS CONSORTIUM)

In a letter addressed to members of religious communities, Vatican officials requested that these groups should not be ignorant of economic realities connected to community life and a mission of serving the world in the name of the Church. LOS ANGELES, CA ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Proverbs 3:27-34
27 Refuse no kindness to those who have a right to ... Read More

Psalm, Psalms 15:2-3, 3-4, 5
2 Whoever lives blamelessly, who acts uprightly, who ... Read More

Gospel, Luke 8:16-18
16 'No one lights a lamp to cover it with a bowl or ... Read More

Saint of the Day

Saint of the Day for September 22nd, 2014 Image

St. Thomas of Villanueva
September 22: Augustinian bishop. Born at Fuentellana, Castile, Spain, he was ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter