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Fourteen banks are reportedly set to reach a $10B settlement with regulators over abusive...
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Monday, December 31, 2012, 2:37 AM ETFourteen banks are reportedly set to reach a $10B settlement with regulators over abusive foreclosure practices such as incorrect paperwork and excessive charges. The banks include the five that agreed to pay $26B in another deal earlier this year - JPMorgan (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C) and Ally Financial. The latest settlement will allow banks to end a review of 4M loan files that has cost 1.5B so far.
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HA! I was commenting above as someone with stock. I just remembered an adventure I had with mortgage servicers! Some years ago I had a rental home and payments current for years. Then I switched insurance policies. The new company sent the appropriate paperwork. A year or so later, my payment jumped. I called and found out that a new insurance policy had been taken out on my property since I allowed the insurance to "lapse". Guess who had to pay a nice chunk of change for double coverage? Guess who owned the "Troubled Loan" insurance company? I had money, thank God, or I would have lost the house or been forced to sell.
On on the harmless aspects of this call the lady in the Jacksonville office who was on the other side. The description and press release was undoubtedly negotiated and I suspect some borrowers would use stronger language.
I know, banks just pay billions because of mean old judges.
"Monday, December 31, 2012, 2:37 AM Fourteen banks are reportedly set to reach a $10B settlement with regulators over abusive foreclosure practices such as incorrect paperwork and excessive charges. The banks include the five that agreed to pay $26B in another deal earlier this year - JPMorgan (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C) and Ally Financial. The latest settlement will allow banks to end a review of 4M loan files that has cost 1.5B so far."
they're willing to pay that money because they're dead bang caught.
that's the entitlement problem. not little people's pensions and unions and medicare. the bankers and shareholders who steal and pay a pittance and have none of their profits or their personal fortunes seized or are not sent to the stoney lonesome. only the outsiders go.
On the one side, you have regulators telling banks to pay $10 billion in order to stop being required to look for victims. So if there are no victims identified, how can the funds be dispersed?
On the other side, the reviews weren't just looking for people who were charged fees or evicted unfairly, they were also looking for faulty paperwork. So taking this article at face value, apparently all the reports of NINJA loans weren't true. Nobody got a mortgage during the housing bubble that shouldn't have. Who knew?
Of course there's always the possibility that the independent consultants really weren't all that independent.
What I believe is happening is that in 2009 The government "encouraged these banks to take on some of the liabilities fostered by the housing bust. Since then they have been working together to try to get money through the banks to as many mortgage holders that are in trouble as possible. The Fed prints free money gives it to the banks who in turn use the money to re-imburse customers or modify loans to try to take some of the heat off of the Federal Budget.
In the mean time...a bunch of lawyers get rich. That is just what I believe maybe I am a "nut:
Didn't mean to imply that it was a bailout. By Fed I meant the Federal Reserve and by free money I meant loaning to the banks at zero interest rate which they then turn to profits and move to customers. The problem I have is that this is done through lawyers and lawsuits instead of other methods. This story is just another example of a lawsuit that is being settled out of court where no wrongdoing was found on the part of the banks who settled to get the problem and litigation behind them.
Don't get me wrong... I believe BAC was "encouraged" to take on Merrill and Countrywide just as JPM was "encouraged" to take on Bear Stearns. I think these big banks did us all a favor and don't deserve the scorn they recieve. It is unbelievable to me that we even hear anyone talking about breaking up these banks. My memory of the events was that the companies that got in trouble during the crisis were a Car Company, three brokerage companies, and an Insurance company.
comments, I realize that 90% of them are either racist, a personal
opinion, or way off base.
The intelligent one's are few and far between.
Happy New Year !!!
Business has gotten uglier and uglier. Like to see some law do something about that. Not that politics is any prettier.
Especially escrow instructions & final docs.