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DOJ/States Shake Down Lenders For $25B

From CNN’s Money.Com:

Big states set to make mortgage deal real

By Jennifer Liberto
February 9, 2012

WASHINGTON (CNNMoney) — New York and California will join just about all the other states in a settlement with the nation’s largest banks aimed at helping homeowners struggling with loans bigger than the value of their homes, according to a person familiar with the talks.

A few other states were still on the fence as of late Wednesday, the person said.

With those two big states, the deal could be worth as much as $25 billion when it is announced, either Thursday or Friday, another person familiar with the talks said…

Fortunately, the banks will absorb all of this loss. We consumers, those of us who have been paying our mortgages or our rent on time, won’t see any increase in our ATM fees or any other costs.

For more than a year, state attorneys general, regulators, federal officials and big banks have been in talks about a settlement of allegations of improper foreclosures based on "robosigning," seizures made without proper paperwork.

Most of which is pure fantasy.

As of Wednesday night, at least 42 had signed on, which would yield as much as $25 billion available for qualified homeowners. The deal marks the largest housing relief available "underwater" homeowners whose principal exceeds their home’s value, as well as those who have been foreclosed on, since the financial crisis began.

Under an earlier draft of the deal, some 1 million U.S. homeowners who are underwater on their mortgages could be eligible for as much as $20,000 in relief of principal owed, according to Secretary of Housing and Urban Development Shaun Donovan

Does anybody really believe that this $25 billion dollars will ever find its way to underwater homeowners and people who have been foreclosed on?

Besides, why should these people be rewarded for being behind in their payments?

But the relief would only be available to those homeowners whose mortgages haven’t been sold to the government-sponsored mortgage guarantors Fannie Mae and Freddie Mac…

Because Obama is going to take care of those people, with Harp III.

The deal is supposed to protect consumers when it comes to robosigning, and ensure that mortgage servicers agree to communicate better, avoid delays and give homeowners who are late on mortgage payments a fairer shake…

Because banks just can’t wait to foreclose on people. They know they can make a fortune, given the shortage of houses on the market.

The negotiations are between federal agencies, including the U.S. Department of Justice and the U.S. Department of Housing and Urban Development, as well as the state attorneys general and the five largest mortgage servicers: Bank of America, Wells Fargo, JPMorgan Chase, Citigroup (C, Fortune 500) and Ally Financial

So you know that these are fair negotiations. The government doesn’t have a gun to the head of the bankers.

And left-leaning groups, including Move On and the New Bottom Line, are continuing to urge states to hold out for a big criminal investigation and a $300 billion settlement award.

Naturally. The bigger the ‘settlement’ the bigger their cut.

By the way, the "New Bottom Line" is the same old ACORN. And they are up to their same old tricks.

This article was posted by Steve on Thursday, February 9th, 2012. Comments are currently closed.

4 Responses to “DOJ/States Shake Down Lenders For $25B”

  1. P. Aaron says:

    GOV’T IS THE MOB.

  2. proreason says:

    Fascism is definitely upping its game.

  3. Petronius says:

    Too bad we all can’t use Tony Rezko for our real estate and mortgage needs.

  4. Chase says:

    My neighboring state of Utah’s legislature is keeping $23m of the $171m their state is getting form the shakedown for their slush fund.

    SALT LAKE CITY — The state of Utah and its homeowners will get an estimated $171 million from a landmark settlement with the nation’s biggest mortgage lenders following the country’s housing bubble burst.

    Utah Attorney General Mark Shurtleff says about $102 million of Utah’s share will reduce or modify loans for households at risk of foreclosure.

    http://www.deseretnews.com/article/700223636/Utah-takes-171M-in-national-mortgage-settlement.html

    Another $45 million is available for people who lost their homes to foreclosure. They’ll get $2,000, no questions asked.

    The Utah Legislature will get another $23 million in cash to spend as it sees fit.


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