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Banks reach an 8.5 Billion dollar mortgage abuse settlement

tweaker2

Lifer
Aug 5, 2000
12,015
3,271
136
See? that's a perfect example of why we need to deregulate the banks, just like all those conservatives keep whining about. If we had deregulated even further under Bush/Cheney this never would have been a problem because those banks wouldn't have gotten caught doing those dirty deeds in the first place.

I mean, that's what conservatives really want right? They want the banks to have a free hand at regulating themselves seeing as if the bank(st)ers are all honorable and honest individuals that are forthright and judiciously dedicated to put their clients needs before theirs, right? LOL
 

airdata

Diamond Member
Jul 11, 2010
4,987
0
0
Interesting.

I have to assume somewhere in there that they assume no fault or wrong doing.
 

jackstar7

Lifer
Jun 26, 2009
11,679
1,941
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So if they were willing to pay $8.5bn...surely they weren't protecting something worth much more, right?
 

drebo

Diamond Member
Feb 24, 2006
7,040
1
81
See? that's a perfect example of why we need to deregulate the banks, just like all those conservatives keep whining about. If we had deregulated even further under Bush/Cheney this never would have been a problem because those banks wouldn't have gotten caught doing those dirty deeds in the first place.

I mean, that's what conservatives really want right? They want the banks to have a free hand at regulating themselves seeing as if the bank(st)ers are all honorable and honest individuals that are forthright and judiciously dedicated to put their clients needs before theirs, right? LOL
If they were fully deregulated, they would have had to live with the consequences of their poor lending practices, and thus likely would not have engaged in them.

This still doesn't help anyone, though. Banks are still hording houses in an effort to keep prices artificially high.
 

Matt1970

Lifer
Mar 19, 2007
12,321
2
0
See? that's a perfect example of why we need to deregulate the banks, just like all those conservatives keep whining about. If we had deregulated even further under Bush/Cheney this never would have been a problem because those banks wouldn't have gotten caught doing those dirty deeds in the first place.

I mean, that's what conservatives really want right? They want the banks to have a free hand at regulating themselves seeing as if the bank(st)ers are all honorable and honest individuals that are forthright and judiciously dedicated to put their clients needs before theirs, right? LOL
Oh you mean like this kind of regulation?

http://www.youtube.com/watch?v=pQs8-OHFSdM
 

1prophet

Diamond Member
Aug 17, 2005
5,271
492
126
Ten of the biggest U.S. mortgage companies have agreed to an $8.5 billion settlement with federal regulators that will end a case-by-case review program to identify victims of widespread foreclosure abuses. About F'in time but this is a drop in the bucket compared to how much they damaged the World's economy.

http://www.nbcnews.com/business/economywatch/banks-reach-8-5b-settlement-mortgage-abuse-1B7863650
So banks bought the level of justice they can afford and left many to swing in the wind, and you are pleased with this.

Are you sure you are not a republican in democrats clothing?

But critics of the deal fear it may also leave behind millions of foreclosed homeowners who got little or no relief from the lenders that created the mortgage mess in the first place.


"I have serious concerns that this settlement may allow banks to skirt what they owe and sweep past abuses under the rug without determining the full harm borrowers have suffered," said Rep. Elijah E. Cummings, D.- Md., a member of the House Committee on Oversight and Government Reform and a vocal critical of the government regulators handling of the mortgage crisis.



OCC officials said Monday the consumers will be better served under the settlement because claims will now be paid more quickly and that the cost of the review process was diverting funds that could have been used to pay claims. More than $1.5 billion has already spent on case-by-case reviews, officials said.



“When we began the Independent Foreclosure Review, the OCC pledged to fix what was broken, identify who was harmed, and compensate them for that injury,” Comptroller of the Currency Thomas Curry said in a statement. “While today’s announcement represents a significant change in direction, it meets those original objectives by ensuring that consumers are the ones who will benefit, and that they will benefit more quickly and in a more direct manner.”



Under the agreement, banking giants JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and six other mortgage lenders will provide $5.2 billion in mortgage assistance and $3.3 billion in direct payments to wronged borrowers, according the Office of the Comptroller of the Currency and the Federal Reserve.



The other seven lenders include Aurora, MetLife Bank, PNC, Sovereign, SunTrust, and U.S. Bank.


The banks were among 12 lenders and two mortgage servicing companies cited by regulators in 2011 for widespread foreclosure abuses following claims that they had improperly seized homes in the wave of foreclosure filings that swamped the industry after the 2007 housing collapse.





OCC officials said that the 10 lenders have agreed to the settlement in principal, but that the terms will not be disclosed until they are finalized. They said talks are continuing with other institutions ordered to review foreclosures, which include EverBank, OneWest, HSBC and Sovereign Bank.
When industry-wide foreclosure abuses surfaced nearly two years ago, federal banks regulators required banks and servicing companies to hire consulting firms to contact borrowers and review their cases. Some 4.4 million letters were sent to potential claimants, of which about a half million applied by the Dec. 31 deadline to have their cases reviewed.



Consumers groups working to head off foreclosures have criticized the review program from the start, in part because the consulting firms conducting the reviews were hired and paid by the financial institutions cited for wrongful practices. Since then, critics have cited slow progress in reviewing cases and compensating wrongful foreclosure victims.


Federal regulators said in June that the lenders conducting reviews would have to pay as much as $125,000 to borrowers whose homes were wrongly seized. But so far, no borrowers have been paid, according to regulators.




Critics of Monday’s settlement argued that it will leave many wronged homeowners with no further recourse and that it substantially reduced the amount lenders will ultimately have to pay.



“For many people this will be the end of the line," said Diane Thompson, an attorney with the National Consumer Law Center. “This is a much lower number for the banks compared compare to what they were at risk for.
 

Nintendesert

Diamond Member
Mar 28, 2010
7,761
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0
I really wish we would have let some of these big banks and corporations fail instead of giving out all that bailout money.
 
Apr 27, 2012
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The hypocrisy is amazing, the OP supports big government which is responsible for what happened back then and now he is railing against these evil banks
 

wirednuts

Diamond Member
Jan 26, 2007
7,121
1
0
So if they were willing to pay $8.5bn...surely they weren't protecting something worth much more, right?
hiding what? everyone and their grandma knows the banks made off like living devils. they know it, so any amount to get out of it is a good amount. seeing as we lost trillions through the economy though, i agree it is pretty frivolous.
 

wirednuts

Diamond Member
Jan 26, 2007
7,121
1
0
The hypocrisy is amazing, the OP supports big government which is responsible for what happened back then and now he is railing against these evil banks
right wingers just love to bitch. doesnt matter about what or who. the louder you complain the more stuff that gets done.
 
Apr 27, 2012
10,086
58
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right wingers just love to bitch. doesnt matter about what or who. the louder you complain the more stuff that gets done.
I am not a right winger, Besides what I said was true, supporters of big government getting angry when big government fails
 

Blackjack200

Lifer
May 28, 2007
16,009
1,678
126
Separately, Bank of America agreed yesterday to pay $10 billion to Fannie Mae to settle any and all claims that they misrepresented the quality of the mortgages they were selling. I think the claim is ludicrous, there was nothing stopping Fannie or Freddy from examining the mortgages they were buying. In fact, a lot of individual investors made a killing in the CDS market doing just that. If these banks knew they were selling junk, why were they holding so much of it when the music stopped? It's total bullshit and it doesn't pass the sniff test for a moment. IMO Fannie and Freddy took advantage of legitimate public frustration and used it to grab cash from the banks.

About F'in time but this is a drop in the bucket compared to how much they damaged the World's economy.
Ok, there is no doubt that the banks played a role... but did anyone else play a roll?

What about -

Buyers that bought houses they couldn't afford?
Or the originators that convinced them to?
Or the builders that built way too much inventory?
Or the federal government that continues to distort the market with the mortgage interest deduction? Or that set artificially low tax rates that encouraged a boom/bust cycle?

Of these groups, who has been punished? No one.

If they were fully deregulated, they would have had to live with the consequences of their poor lending practices, and thus likely would not have engaged in them.
If by "had to live with" you meant get liquidated, they essentially did. Shareholders at AIG, Bear Stearns, Lehman, Merrill Lynch, and many other financial institutions lost virtually everything they had invested. They existing shareholders were stripped and they were recapitalized, sometimes with public money, sometimes with private.

This still doesn't help anyone, though. Banks are still hording houses in an effort to keep prices artificially high.
I find this kind of comment the most frustrating. What exactly is served by flooding the market with cheap houses? So people can get into them and then realize "oh shit, I can't afford the property taxes and maintenance"? So they let them fall apart and blight their neighborhoods?

I bought a house in 2008 after the prices had fallen significanly (but still had much farther to fall). It's a small ~1400 sq. foot, modest house.

Since then I've pulled an oil tank out of the ground, replaced the flooring on the first floor, repaired all the overhangs, removed eight large trees that were dropping branches on cars, and completely replaced the porch (deck and frame last year, ceiling, roof, and columns this year). All in all I've probably spent somewhere in the neighborhood of $20k. My father, a contractor with 30 years of experience has helped me do most of this. Without him it probably would have been more like $30k.

What still needs to be done?

Everything from knob and tube wiring to insulation, to a complete remodel in the kitchen.

My point is that I have to do all this because the last 2 or 3 owners didn't do any of it. House prices falling another 20% to 30% won't help that at all. I happily work on my house even though I'm upside down on the mortgage, but it's not always easy. How many other people will do the same?
 

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