$25-billion foreclosure deal will help heal market

stevewig · 02-09-2012, 01:43 PM

Reporting from Washington—
In unveiling a landmark $25-billion settlement of investigations of foreclosure abuses, federal and state officials said Thursday they were holding the nation’s five largest mortgage servicers accountable for the problems while also providing help to up to 2 million homeowners affected by the collapse of the housing market.

"This isn’t just about punishing banks for their irresponsible behavior," Housing and Urban Development Secretary Shaun Donovan said at a Washington news conference. "It’s also about requiring them to help the people they harmed by funding efforts to help homeowners stay in their homes.."

Mortgage, foreclosure deal could help homeowners, housing market - latimes.com

newarts · 02-09-2012, 03:18 PM

This sounds like a horrible deal if, as I suspect, it gives the banks immunity from prosecution for the $7Trillion in losses sustained by the housing market.

25E9/7E12 x100 = 1/3%

One third percent buys immunity? I hope not!

Assuming everyone acted in good faith, to be fair the losses should be shared by all parties. Certainly not 99.2/3% to 1/3%. (I know this vastly overstates the fairness but if their side can do it, so can I

)

mikemike · 02-10-2012, 07:03 AM

Finally, justice has been served!

Does this mean that all those former homeowners will quit whining once they get their $2000 STFU Check?

If we only needed $25B, less attorney fees, to bail out homeowners, why did we need $700B to bail out banks?

Nesster · 02-10-2012, 07:51 AM

This only addresses a small portion of the whole issue - robo signed documents and similar illegalities. And it appears quite a bit of the money will go towards making lawyers available to individuals who otherwise could not afford them, in order to sue the banks for these specific violations.

Looks like we can expect other piecemeal settlements along these lines as the prosecutor task force proceeds.

GeneV · 02-10-2012, 08:15 AM

Originally posted by Nesster

This only addresses a small portion of the whole issue - robo signed documents and similar illegalities. And it appears quite a bit of the money will go towards making lawyers available to individuals who otherwise could not afford them, in order to sue the banks for these specific violations.

Looks like we can expect other piecemeal settlements along these lines as the prosecutor task force proceeds.

This is really just a symptom of the deluge of foreclosures. The entire MERS system was a symptom of the deluge of mortgages from the bubble.

jeffkrol · 02-10-2012, 01:31 PM

Originally posted by mikemike

Finally, justice has been served!

Does this mean that all those former homeowners will quit whining once they get their $2000 STFU Check?

If we only needed $25B, less attorney fees, to bail out homeowners, why did we need $700B to bail out banks?

because of the Ponzi scheme nature of it..........

As a side note our illustrious gov. decided to keep a bunch for "the state"...........
http://www.allvoices.com/contributed-news/11488904-gov-scott-walker-takes-fo...budget-deficit

Quote:

"Wisconsin is set to receive $140 million, $31.6 million of which comes directly to the state government. And Walker is planning to use $25.6 million of that money to help balance his state's budget,"

magkelly · 02-11-2012, 09:31 PM

Supposedly it works out to about 2K per person abused by the system. That's supposed to make up for losing their homes et all. (Rolls eyes....) Yeah, a bit too little too late there...

newarts · 02-11-2012, 10:12 PM

Good article on this by Spitzer & Ratigan..Dylan Ratigan: On the Mortgage Settlement: There Is No Political Solution to a Math Problem

jeffkrol · 02-12-2012, 04:54 AM

Originally posted by newarts

Good article on this by Spitzer & Ratigan..Dylan Ratigan: On the Mortgage Settlement: There Is No Political Solution to a Math Problem

I love this line.............

Quote:

In terms of an investigation, the Savings and Loan crisis used roughly 1000 FBI investigators to uncover fraud -- this task force taking on a crisis forty times more severe will employ 10 FBI agents.

Quote:

Serious economic thinkers across the spectrum, from Democrat Alan Blinder to Republican Martin Feldstein to New York Fed President William Dudley, believe that there is only one solution -- writing down the enormous creaking mound of debt. This solution is currently off the table, because writing down these unsustainable debts could cost our fragile banks enormous sums of money and possibly lead to a restructuring of one or more of our major banks. Avoiding this clear policy choice has resulted in our economy falling into a Japan-style "zombie bank" torpor, with debts carried on the books at full value which everyone knows will not be paid back at par.

3 ships fearing to sail off the imaginary flat earth.........

**dadipentak** · 02-12-2012, 06:54 AM

Surprise--the banks win.

GeneV · 02-12-2012, 03:42 PM

In all honesty, though, the issue in this settlement was not the abuses which caused the mortgage crisis or caused the homeowners to lose their homes--eventually. The abuse here was cutting corners in foreclosure litigation. They should have been able to get their paperwork together in the way they do now. It just takes a bit longer.

**dadipentak** · 02-12-2012, 05:53 PM

Originally posted by GeneV

In all honesty, though, the issue in this settlement was not the abuses which caused the mortgage crisis or caused the homeowners to lose their homes--eventually. The abuse here was cutting corners in foreclosure litigation. They should have been able to get their paperwork together in the way they do now. It just takes a bit longer.

That's true but it was certainly fraud on a grand scale and suggests a criminal culture in the banking industry.

02-09-2012, 01:43 PM	#1
stevewig Veteran Member Join Date: Jan 2010 Posts: 773	$25-billion foreclosure deal will help heal market Reporting from Washington— In unveiling a landmark $25-billion settlement of investigations of foreclosure abuses, federal and state officials said Thursday they were holding the nation’s five largest mortgage servicers accountable for the problems while also providing help to up to 2 million homeowners affected by the collapse of the housing market. "This isn’t just about punishing banks for their irresponsible behavior," Housing and Urban Development Secretary Shaun Donovan said at a Washington news conference. "It’s also about requiring them to help the people they harmed by funding efforts to help homeowners stay in their homes.." Mortgage, foreclosure deal could help homeowners, housing market - latimes.com

02-10-2012, 01:31 PM	#6
jeffkrol Veteran Member Join Date: Sep 2006 Location: Wisconsin USA Photos: Gallery Posts: 8,434	Originally posted by mikemike Finally, justice has been served! Does this mean that all those former homeowners will quit whining once they get their $2000 STFU Check? If we only needed $25B, less attorney fees, to bail out homeowners, why did we need $700B to bail out banks? because of the Ponzi scheme nature of it.......... As a side note our illustrious gov. decided to keep a bunch for "the state"........... http://www.allvoices.com/contributed-news/11488904-gov-scott-walker-takes-fo...budget-deficit Quote: "Wisconsin is set to receive $140 million, $31.6 million of which comes directly to the state government. And Walker is planning to use $25.6 million of that money to help balance his state's budget," Last edited by jeffkrol; 02-10-2012 at 03:47 PM.

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02-09-2012, 03:18 PM	#2
newarts Inactive Account Join Date: Dec 2008 Location: Ames, Iowa, USA Photos: Albums Posts: 2,965	This sounds like a horrible deal if, as I suspect, it gives the banks immunity from prosecution for the $7Trillion in losses sustained by the housing market. 25E9/7E12 x100 = 1/3% One third percent buys immunity? I hope not! Assuming everyone acted in good faith, to be fair the losses should be shared by all parties. Certainly not 99.2/3% to 1/3%. (I know this vastly overstates the fairness but if their side can do it, so can I )

02-10-2012, 07:03 AM	#3
mikemike Inactive Account Join Date: Apr 2010 Location: New Orleans Photos: Gallery Posts: 3,053	Finally, justice has been served! Does this mean that all those former homeowners will quit whining once they get their $2000 STFU Check? If we only needed $25B, less attorney fees, to bail out homeowners, why did we need $700B to bail out banks?

02-10-2012, 07:51 AM	#4
Nesster Veteran Member Join Date: Oct 2006 Location: NJ USA Photos: Gallery Posts: 13,072	This only addresses a small portion of the whole issue - robo signed documents and similar illegalities. And it appears quite a bit of the money will go towards making lawyers available to individuals who otherwise could not afford them, in order to sue the banks for these specific violations. Looks like we can expect other piecemeal settlements along these lines as the prosecutor task force proceeds.

02-10-2012, 08:15 AM	#5
GeneV Veteran Member Join Date: Oct 2008 Location: Albuquerque NM Photos: Albums Posts: 9,830	Originally posted by Nesster This only addresses a small portion of the whole issue - robo signed documents and similar illegalities. And it appears quite a bit of the money will go towards making lawyers available to individuals who otherwise could not afford them, in order to sue the banks for these specific violations. Looks like we can expect other piecemeal settlements along these lines as the prosecutor task force proceeds. This is really just a symptom of the deluge of foreclosures. The entire MERS system was a symptom of the deluge of mortgages from the bubble.

02-11-2012, 09:31 PM	#7
magkelly Veteran Member Join Date: May 2010 Photos: Gallery Posts: 5,901	Supposedly it works out to about 2K per person abused by the system. That's supposed to make up for losing their homes et all. (Rolls eyes....) Yeah, a bit too little too late there...

02-11-2012, 10:12 PM	#8
newarts Inactive Account Join Date: Dec 2008 Location: Ames, Iowa, USA Photos: Albums Posts: 2,965	Good article on this by Spitzer & Ratigan..Dylan Ratigan: On the Mortgage Settlement: There Is No Political Solution to a Math Problem

02-12-2012, 04:54 AM	#9
jeffkrol Veteran Member Join Date: Sep 2006 Location: Wisconsin USA Photos: Gallery Posts: 8,434	Originally posted by newarts Good article on this by Spitzer & Ratigan..Dylan Ratigan: On the Mortgage Settlement: There Is No Political Solution to a Math Problem I love this line............. Quote: In terms of an investigation, the Savings and Loan crisis used roughly 1000 FBI investigators to uncover fraud -- this task force taking on a crisis forty times more severe will employ 10 FBI agents. Quote: Serious economic thinkers across the spectrum, from Democrat Alan Blinder to Republican Martin Feldstein to New York Fed President William Dudley, believe that there is only one solution -- writing down the enormous creaking mound of debt. This solution is currently off the table, because writing down these unsustainable debts could cost our fragile banks enormous sums of money and possibly lead to a restructuring of one or more of our major banks. Avoiding this clear policy choice has resulted in our economy falling into a Japan-style "zombie bank" torpor, with debts carried on the books at full value which everyone knows will not be paid back at par. 3 ships fearing to sail off the imaginary flat earth.........

02-12-2012, 06:54 AM	#10
dadipentak Site Supporter Join Date: Jul 2008 Location: Baltimore, Maryland Photos: Gallery Posts: 11,590	Surprise--the banks win.

02-12-2012, 03:42 PM	#11
GeneV Veteran Member Join Date: Oct 2008 Location: Albuquerque NM Photos: Albums Posts: 9,830	In all honesty, though, the issue in this settlement was not the abuses which caused the mortgage crisis or caused the homeowners to lose their homes--eventually. The abuse here was cutting corners in foreclosure litigation. They should have been able to get their paperwork together in the way they do now. It just takes a bit longer.

02-12-2012, 05:53 PM	#12
dadipentak Site Supporter Join Date: Jul 2008 Location: Baltimore, Maryland Photos: Gallery Posts: 11,590	Originally posted by GeneV In all honesty, though, the issue in this settlement was not the abuses which caused the mortgage crisis or caused the homeowners to lose their homes--eventually. The abuse here was cutting corners in foreclosure litigation. They should have been able to get their paperwork together in the way they do now. It just takes a bit longer. That's true but it was certainly fraud on a grand scale and suggests a criminal culture in the banking industry.