Five U.S. banks agree to $25B mortgage settlement

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Five top U.S.banks reached a $25billion settlement with the U.S.government to compensate homeowners in 49 states for abusive foreclosure practices.     Five banks include, Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co, Citigroup Inc and Ally Financial Inc.

Under the agreement, approximately 750,000 borrowers who lost their homes to foreclosure between 2008 and 2011 will received a $2,000 cash payment.

The banks also agreed to provide $17 billion in principal reduction and loan modifications for delinquent borrowers who are facing foreclosure.    And the deal would include $3 billion to help borrowers who are current on their mortgage payments but unable to refinance because they owe more than their homes are worth.

The goal of the settlement is to open a new avenue for housing relief as it will force the banks to write down mortgages at a time when about one in four borrowers owe more on their mortgage than their home is worth.

 

Anna Timone (195 Posts)


Comments

  1. Unbelievable…
    “Under the agreement, approximately 750,000 borrowers who lost their homes to foreclosure between 2008 and 2011 will received a $2,000 cash payment.”
    Like that is a fair deal. Put those thieving banksters in jail, and they can keep their $2000. I hope this comes back and bites them in the tush…

    http://www.zerohedge.com/news/biggest-obstacle-record-shadow-housing-inventory-and-how-obama-may-have-just-popped-consumer-sp

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