Richard Zombeck: HuffPO-
You may remember some hubbub back in February about some talks involving a $26 billion settlement that was supposed to provide relief to nearly two million American homeowners. Many homeowner activists, bloggers, and homeowners themselves saw the settlement is nothing more than another giveaway to placate the banks and servicers. It’s starting to look as though they were right.
Despite the warnings, outrage, and in some cases pleading, some of the biggest voices in the consumer advocacy community touted the settlement as a positive thing for homeowners.
AFL-CIO President Richard Trumka said:
The banks broke the law by railroading homeowners through the foreclosure process. Today’s settlement provides compensation for foreclosure victims without requiring individuals to waive their legal claims. While banks must be made to pay more to help homeowners, the settlement includes needed principal write-downs so homeowners can stay in their homes.
Alys Cohen of the National Consumer Law Center said it would move the ball forward and that it was a game changer. Iowa Attorney General Tom Miller, who headed up the whole process, said “This agreement is the only way we’re going to get to substantial principal reduction.”