FIVE big banks finally reached a deal with government authorities last week over dubious mortgage practices and foreclosure abuses.
After months of talks, Ally Financial, Bank of America, Citibank, JPMorgan Chase and Wells Fargo agreed to pay a total of $5 billion in cash to try to remedy this fiasco. They will also help homeowners who are underwater on their mortgages by reducing the principal on their loans by a combined $17 billion over the next three years.
Borrowers who qualify will get $3 billion in refinancing arrangements. Those who were improperly foreclosed on will get a combined $1.5 billion. That probably nets out to less than $2,000 a person.
“AG Van Hollen’s office made the decision, in consultation with G ov. Scott Walker to use most of the $ 31.6 million…to balance the state budget rather than to help the thousands of Wisconsin resdients who have lost their homes to fraudulent mortgage practices.”
As many of you have feared, settlement $ may go to the states, but never reach the People in foreclosure:
http://www.msfraud.org
“AG Van Hollen’s office made the decision, in consultation with G ov. Scott Walker to use most of the $ 31.6 million…to balance the state budget rather than to help the thousands of Wisconsin resdients who have lost their homes to fraudulent mortgage practices.”