Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

2/11/2012 (4 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 (4 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'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More Business & Economics

The world of news is changing, Buzzfeed struggles to keep up Watch

Image of Buzzfeed is struggling, can they cope with the shift in media culture?

By Marshall Connolly (CALIFORNIA NETWORK)

There's growing concern that Buzzfeed doesn't have a very bright future, at least as far as news is concerned. The firm has missed its projected revenues, and it may look to the news for the place to cut. LOS ANGELES, CA (California Network) - It's hard to get news ... continue reading


Two hundred French police raid Google over unpaid taxes as it's revealed firm may owe nearly $2 BILLION! Watch

Image of Police have raided the Google headquarters in Paris, seeking evidence of tax evasion.

By Marshall Connolly (CALIFORNIA NETWORK)

Your favorite brands may be in trouble for tax evasion. Over a hundred police officers and another hundred support personnel have raided Google's headquarters in France as part of an investigation into the company's taxes. Google is one of many brands that may owe ... continue reading


Censorship in America is alive and well. You'll be surprised to see who you can thank! Watch

Image of Obama and Zuckerberg work closely. It's not clear on what.

By David Drudge (CALIFORNIA NETWORK)

Freedom of the press may be the most important fundamental right in a free society. This is why censorship, particularly on social networks such as Facebook, is particularly onerous. LOS ANGELES, CA (California Network) - Freedom of the press is enshrined in the First ... continue reading


Facebook censor scandal - What is Zuckerberg up to? Watch

Image of Facebook censorship scandal prompts Zuckerberg to move (Pinterest).

By Kenya Sinclair (CALIFORNIA NETWORK)

Mark Zuckerberg is set to hold a meeting on Wednesday with Glenn Beck and Dana Perino to talk Facebook's censorship scandal. LOS ANGELES, CA (Catholic Online) - Recently a Gizmodo report accused Facebook of suppressing conservative news in the "trending" section.The ... continue reading


YES, bosses should let their employees power nap. So why don't they? Watch

Image of Studies show a short nap at work and increase productivity, alertness, memory, and cognition.

By Marshall Connolly (CALIFORNIA NETWORK)

There's something to be said for the afternoon siesta, after all. Or at least a power nap, according to one sleep expert from the University of Adelaide. Research shows that a ten-to-fifteen-minute nap in the afternoon improves performance. LOS ANGELES, CA (California ... continue reading


191 THOUSAND mining jobs lost since September '14 Watch

Image of With less coal, the US will need to turn to other countries (Pinterest).

By Kenya Sinclair (CALIFORNIA NETWORK)

Coal provides a cheap and efficient source of power - and the United States has lost 191,000 miners to provide this commodity. LOS ANGELES, CA (Catholic Online) - According to the <a href=http://www.bls.gov/news.release/pdf/empsit.pdf>Bureau of Labor ... continue reading


Obama brags in face of economic failure Watch

Image of The Obama administration claims the economy is thriving - but what is REALLY going on (TPNN)?

By Kenya Sinclair (CALIFORNIA NETWORK)

We all know "that guy." You know the one - the guy who is obsessed with conspiracy theories and who swears the government is out to get us. Well, according to newly released economic data, "that guy" might be (partially) right. LOS ANGELES, CA (Catholic Online) - U.S. ... continue reading


Yes, there's definitely something wrong with millennials, and here's what it is! Watch

Image of As far as millennials are concerned, the American dream is just that -- you have to be asleep to believe it.

By Marshall Connolly (CALIFORNIA NETWORK)

Across the country, the news is shocking. Over half of the millennials think socialism might be a good thing. Most of them believe the American dream is a myth, and public perception is that something is wrong with them. Why do they just want "free stuff?" LOS ANGELES, ... continue reading


Billionaire Soros warns China is near economic collapse Watch

Image of China's economy may be heading for trouble.

By Marshall Connolly (CALIFORNIA NETWORK)

Billionaire George Soros is sounding the alarm, China is about to go down and the rest of the world could follow. According to Soros, there is a major resemblance between China now and the United States in 2007-2008 just before the U.S. economy entered the Great ... continue reading


IRS issues dire warning before Panama Papers crackdown begins Watch

Image of The Panama Papers detail the tax evasion schemes of thousands of wealthy people around the world.

By Marshall Connolly (CALIFORNIA NETWORK)

The IRS has issued a warning to the rich who have been hiding money offshore - come clean now, before we catch you ourselves. The warning follows the leak of over 11 million pages of documents that detail the private, often hidden financial moves of wealthy people ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • Daily Readings for Friday, May 27, 2016
  • States revolt, 11 sue to block disruptive Obama restroom edict, ...
  • :-D MILLENNIALS REJOICE! New emoji Bible translation is coming!
  • St. Augustine of Canterbury: Saint of the Day for Friday, May 27, 2016
  • Daily Reading for Saturday, May 28th, 2016 HD Video
  • Blessed Mother Teresa of Calcutta HD Video
  • $3,600,000,000,000: the price to repair America

Daily Readings

Reading 1, Genesis 14:18-20
18 Melchizedek king of Salem brought bread and wine; he was a priest of ... Read More

Psalm, Psalms 110:1, 2, 3, 4
1 [Of David Psalm] Yahweh declared to my Lord, 'Take your seat at my ... Read More

Gospel, Luke 9:11-17
11 But the crowds got to know and they went after him. He made them ... Read More

Reading 2, First Corinthians 11:23-26
23 For the tradition I received from the Lord and also handed on to you ... Read More

Saint of the Day

Saint of the Day for May 26th, 2016 Image

St. Philip Neri
May 26: If one had to choose one saint who showed the ... Read More