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In reply to the discussion: Bank Bailout 2: Obama Lets Mortgage Abusers Off the Hook Leave No One Accountable [View all]Better Believe It
(18,630 posts)57. MSNBC: Mortgage settlement leaves most homeowners to fend for themselves
Mortgage settlement leaves most homeowners to fend for themselves
By John W. Schoen, Senior Producer
The Bottom Line at MSNBC
February 9, 2012
Youre hardly skimming the surface, said Paul Dales, a housing economist with Capital Economics. It could help some people a lot, individually. But in terms of the big-picture, overall economy and housing market, its really just a drop in the ocean of the problem.
.... the vast majority of more than 11 million homeowners who owe more than their house is worth, along with six million who are in foreclosure or behind in their payments, wont get help. Thats because the settlement applies only to loans held on the books of the five banks that agreed to settle.
Loans held by government mortgage companies Fannie Mae and Freddie Mac, which account for more than half of U.S. residential mortgages, arent eligible. Nor are most loans that were sold off to private investors or are held by lenders who arent part of the settlement. (State and federal officials are negotiating with other lenders to try to expand the reach of the program. The deal wont be finalized until a federal court judge signs off, which settlement negotiators say they expect in a few weeks.
Under terms of the settlement, the five lenders wont have to pay out the bulk of the $25 billion. Some $17 billion represents credits applied toward targets lenders have to modify some of the loans on their books. Some of those modifications would have happened anyway. Based on a complex formula, bankers will earn credits on a sliding scale depending on the type of modification. The least costly refinancing methods might earn a lender as little as a nickel on a dollar; the costliest would generate a dollar-for-dollar credit.
Read the full article at:
http://bottomline.msnbc.msn.com/_news/2012/02/09/10365356-mortgage-settlement-leaves-most-homeowners-to-fend-for-themselves
By John W. Schoen, Senior Producer
The Bottom Line at MSNBC
February 9, 2012
Youre hardly skimming the surface, said Paul Dales, a housing economist with Capital Economics. It could help some people a lot, individually. But in terms of the big-picture, overall economy and housing market, its really just a drop in the ocean of the problem.
.... the vast majority of more than 11 million homeowners who owe more than their house is worth, along with six million who are in foreclosure or behind in their payments, wont get help. Thats because the settlement applies only to loans held on the books of the five banks that agreed to settle.
Loans held by government mortgage companies Fannie Mae and Freddie Mac, which account for more than half of U.S. residential mortgages, arent eligible. Nor are most loans that were sold off to private investors or are held by lenders who arent part of the settlement. (State and federal officials are negotiating with other lenders to try to expand the reach of the program. The deal wont be finalized until a federal court judge signs off, which settlement negotiators say they expect in a few weeks.
Under terms of the settlement, the five lenders wont have to pay out the bulk of the $25 billion. Some $17 billion represents credits applied toward targets lenders have to modify some of the loans on their books. Some of those modifications would have happened anyway. Based on a complex formula, bankers will earn credits on a sliding scale depending on the type of modification. The least costly refinancing methods might earn a lender as little as a nickel on a dollar; the costliest would generate a dollar-for-dollar credit.
Read the full article at:
http://bottomline.msnbc.msn.com/_news/2012/02/09/10365356-mortgage-settlement-leaves-most-homeowners-to-fend-for-themselves
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Bank Bailout 2: Obama Lets Mortgage Abusers Off the Hook Leave No One Accountable [View all]
Better Believe It
Feb 2012
OP
Was any actual law broken by the banks or is this just one of those things that are frowned upon?
FarLeftFist
Feb 2012
#8
Almost bringing down the entire world economy into a new depression might be considered an "abuse".
Better Believe It
Feb 2012
#14
Will anyone either on the right or the left ever give President Obama credit for doing anything?
nanabugg
Feb 2012
#53
I heard over and over on this board that the settlement would not let them off the hook
Mojorabbit
Feb 2012
#80
No, they only have to pay about $2,000 For each foreclosure fraud and homeowners can not sue.
Dragonfli
Feb 2012
#86
Civil courts can't "land people in jail." They've been given only civil immunity on robo-signing.
Robb
Feb 2012
#22
It's not clear in the article, that the immunity from charges re robo-signing
sabrina 1
Feb 2012
#40
And we seem to be going in the opposite direction on that issue also. There is
sabrina 1
Feb 2012
#46
So post information on all of the other lawsuits that are being litigated. They must be big ones!
Better Believe It
Feb 2012
#50
That's some misplaced smugness, considering one of them is already mentioned in this thread.
Robb
Feb 2012
#69
And there are so many things wrong with that one issue it's hard to keep track of them all
MrCoffee
Feb 2012
#23
So that's the really big ground braking lawsuit we need to watch and should ignore this settlement?
Better Believe It
Feb 2012
#74
Very dishonest, not at all what I said. You said "this was the lawsuit. It's now a done deal."
Robb
Feb 2012
#75
BBI didn't analyze anything. Links were posted. You have no space to talk about unreliability
DisgustipatedinCA
Feb 2012
#31
He or she chose the articles to post. I find those sources to be unreliable.
MineralMan
Feb 2012
#34
Now we don't just micromanage the President, we micromanage federal prosecutors
treestar
Feb 2012
#38
Your argument is "We can't possibly hope to understand this, so it must be good"?
MrCoffee
Feb 2012
#41
MSNBC: Mortgage settlement leaves most homeowners to fend for themselves
Better Believe It
Feb 2012
#57
The talking point is: Don't worry there are a lot more lawsuits pending!
Better Believe It
Feb 2012
#92
Right. Wall Street has lost and the people who have been thrown out of their homes have won!
Better Believe It
Feb 2012
#102
I understand your economic desperation. But you would be far better off with a settlement that's .
Better Believe It
Feb 2012
#106
AG Settlement Ends Robo-Signing and Provides a Model for Preventing Foreclosures
Swede
Feb 2012
#105