Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

2/11/2012 (3 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 (3 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.

By Atarah Haely (NEWS CONSORTIUM)

Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading


BIRTHING PAINS - America on brink as markets plunge Watch

Image of Market collapse is just one of many signs that the end is approaching. What comes next?

By David Drudge, Catholic Online (NEWS CONSORTIUM)

The U.S. stock market opened with a bang on Monday, and it appears to be the same sound you hear when something catastrophic happens to your engine. Several commentators have already dubbed the day, "Black Monday" as the market appeared to be on track for its largest ... continue reading


FINALLY: Researchers reveal that sex does not sell Watch

Image of Sex and violence is not an edge in advertising.

By Linky C. (NEWS CONSORTIUM)

Maybe sex doesn't sell after all. This is what studies reveal in a recent academic journal released by the Psychological Bulletin. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Violence and sex in commercials does not appear to sell anymore. Compared to themes and ... continue reading


3 great tips on how to spot an online purchasing scam Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

With a growing population of people having internet access worldwide, there are a lot of businesses outsourced from the World Wide Web. Online shops sprout left and right because of easy access and an almost free platform, but limits in security are present. If ever ... continue reading


BLEEDING U.S. DRY: Federal taxes draining as much as $17,955 per worker Watch

Image of Tax revenues are about $183,397,970,000 in constant 2015 dollars from the $2,489,016,030,000 in revenue that the Treasury collected for 10 months in fiscal 2014.

By Catholic Online (NEWS CONSORTIUM)

They are bleeding the U.S. - and us, dry with massive amounts of taxation. The federal government collected a record of approximately $2,672,414,000,000 in tax revenues through the first ten months of fiscal 2015. And yet - that national deficit just keeps on getting ... continue reading


National debt frozen at $18,112,975,000,000 for 150 days Watch

Image of Treasury Secretary Jacob Lew explained in a letter dated March 13 that some steps the Treasury would take during the debt issuance suspension period.

By Catholic Online (NEWS CONSORTIUM)

Treasury Secretary Jacob Lew has sent out a letter to Congressional leaders telling them that he was extending a "debt issuance suspension period" through October 30. The amount of the federal debt subjected to a legal limit set by Congress closed on Monday, August 10, ... continue reading


America needs Catholic leadership now, and here's how you can make it happen Watch

Image of Rallies have erupted across the country blaming the wealthy for the plight of the poor, but the truth is, everyone is to blame. Regardless of blame, it's time to talk about what to do, and that talk should be informed by Catholic teaching.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

The stock market is poised for a collapse and that's not a good thing for American jobs. As growth slows and the risk of another recession looms, Americans are left to wonder where the good times have gone.  LOS ANGELES, CA (Catholic Online) - Americans are barely ... continue reading


Pope's environmental encyclical clashes with Catholic Church's investments in oil Watch

Image of The pope's encyclical has prompted debate in Catholic organizations and other churches about divestment. To date, many major American dioceses have resisted the push.

By Catholic Online (NEWS CONSORTIUM)

It's a conflict of interest that concerns many. Pope Francis, with the release of his encyclical, called attention to world ecology and how much climate change - as well as the exploitation of the poor, hinges on "highly polluting fossil fuels." While this is ... continue reading


Print Struggles: Internet becomes United States' Number One source for news Watch

Image of Newspapers in seeing the digital revolution have now since gone online.

By Catholic Online (NEWS CONSORTIUM)

When people in the United States want to hear about what's breaking in the news - they turn not to newspapers or TV, but online news sources. The immediacy of online news and its ability to instantly update stories while they happen has many other forms of mass ... continue reading


MANY GIVE UP: 93,770,000 Americans not working - and not seeking work Watch

Image of At its absolute lowest since the late 1970s, the BLS highlighted that the unemployment rate remained at 5.3 percent and non-farm payroll jobs increased by 215,000.

By Catholic Online (NEWS CONSORTIUM)

According to recent figures, as provided by the Bureau of Labor Statistics, many Americans have simply given up. They are either living with their parents, living off of their spouse's income or found a way to stay out of the job market. It's estimated that ... 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, Jeremiah 1:17-19
17 'As for you, prepare yourself for action. Stand up ... Read More

Psalm, Psalms 71:1-2, 3-4, 5-6, 15, 17
1 In you, Yahweh, I take refuge, I shall never be put ... Read More

Saint of the Day

Saint of the Day for August 29th, 2015 Image

St. Sabina
August 29: St. Sabina's feast day is August 29th. We know St. Sabina only ... 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