Are you satisfied with the big banks' $8.5 billion settlement?
- No, this settlement is merely an out for the banks to hide the true extent of their foreclosure abuses. (96%, 190 Votes)
- Yes, this settlement is a fair trade for a stop to sweeping federal review. (4%, 7 Votes)
Total Voters: 197
The top 10 mortgage servicers in the U.S. have reached an $8.5 billion settlement with the Federal Reserve (the Fed) and the Office of the Comptroller of the Currency (OCC). The settlement will put a halt to the sweeping federal review of lender foreclosure abuses.
At its inception, the review had three specific goals:
- identify harmed borrowers;
- compensate them for their losses; and
- fix the broken aspects of the mortgage servicing system.
Regulators claim the settlement was reached since it meets the review’s original objectives.
The big banks will pay as much as $125,000 to individual borrowers whose homes were in foreclosure in 2009 and 2010. In addition to direct payouts, the banks will also provide $5.2 billion to assist borrowers with mortgage modifications and principal forgiveness.
Since the settlement will eliminate the foreclosure review before completion, Congress will not be provided a full report detailing specific foreclosure abuses perpetrated by the banks.
first tuesday insight
At this point, all we can do is shake our heads.
Of course, we’re not surprised. However, this settlement is particularly shameful since it keeps our top federal regulators from doing their most important job: identifying abuse and stopping it.
Hopefully everyone watching realizes that these settlements amount to one, simple truth: the banks are paying-off the government and the taxpayer to avoid public reproach and continue with business as usual.
For those who still believe that billion dollar settlements send a powerful punitive message, let us put the whole thing in perspective. The settlement totals $8.5 billion proportionally split between 10 banks. Just one of the banks involved, JPMorgan Chase, reported record profits in Q3 2012 of $5.3 billion. This is one quarter of one bank’s annual profits.
In other words, the cost incurred as a result of the settlement is nominal — considered to be marginal operating losses. That is, losses incurred in order to operate outside the law.
Related articles:
re: “Ten banks to pay $8.5 billion to settle foreclosure abuse review” from the Los Angeles Times
It is so laughable that again the public are the butt of the joke and the banks will be laughing all the way to more profits. Why was anyone expecting anything different when the banks who are the Fed decide how much spare change to give back to the consumers who are still bent over and taking it!!
We live in a rotting society with the few sitting above the stench and the rest holding their breath hoping things will change…….
Well, that takes care of about 5% of the banks’ abuses. Typical of our spineless politicians and bureaucrats.
The big banks are not all included in the settlement. The real special banks like OneWest AKA IndyMac are not having to comply with anything. They have the sweet heart deal with the FDIC for the Sharred-Loss agreements where they are rewarded for treating borrowers bad. They are abusive and yet not having to pay for their dealings. Oh, The C.F.P.B. is so far a Joke. The people I spoke with there have no Idea of the ins and outs of the mortgage market or Real Estate Market. Just over educated and no experiance. Any one feel different?
This was a huge win for the banks. Almost all this money will go to the states. Of the 413K people who filed claims almost all will get zero. The only ones who may get a few (2-5K) thousand are the ones who actually lost their homes. The regulators are run and paid by the banks. There was originally 25 Billion set a side.
We just got a another letter telling us we didn’t qualify for the settlement after a through review, lol Although it took them almost 4 months to determine that, ha ha ha I knew this would happen it always does. Just like the Wells Fargo settlement (google it) with the state of CA back in Dec. 2010 I actually had personal emails with the head trial attorney. Many did not get money without having to suit WF personally, they renigged on almost everything and CA attorney general put no provisions in place to punish them before the settlement was final. In addition WF got 150 Billion portfolio from Wachovia for 18 Billion (firesale) then thanks to the crook George Bush jr., got an instant tax break for another 4 Billion, gee you think they made out? Also bad news George jr help put 3 federal laws in place to protect the banks from class action status and making it very difficult to go after them criminally or personally, unless one has very deep pockets to pay those high price attorneys. Sorry if my spelling is bad, but you get the point.
Banks are the biggest crooks world wide.