MORTGAGE SERVICING SETTLEMENT: MYTH VS. FACT

It’s like watching our Government PR machine at work or watching an old re-run of the X-Files.
Just so the government could address all of the complaints about the recent $25B settlement with the banks they created a “Fact Versus Myth” sheet.

We’ve attached a link so you can do your own due diligence.

Aside from the payment issues, we like how the government addresses that Banks will not be held responsible for their actions related to origination and securitization practices.

The sheet mentions how the formation of a joint investigation task force headed up by senior Department of Justice officials,
New York Attorney General Schneiderman and other federal and state partners will investigate the origination and securitization practices of the banks.

To that fact we ask, “What are the Attorney Generals waiting for?”  “Why haven’t they investigated this meltdown two, three, four years ago?”

The fact sheet also states, “The settlement does not prevent state and federal authorities from pursuing criminal enforcement actions related to this or other conduct by the servicers- including civil rights, fair housing, fair lending and other violations. The settlement does not prevent the government from punishing wrongful securitization conduct that will be the focus of the new Residential Mortgage-Backed SecuritiesWorking Group, which President Obama announced during his State of the Union address.”

More questions from us, “What are the state and federal authorities waiting for?”  “Did they not see the feature documentary Inside Job?”

Of course, the sheet mentions how the settlement does not prevent any action by individual borrowers who wish to bring their own lawsuits.

Okay, everyone, get on the horn to your lawyer and take it up with the bank. It doesn’t look like the Feds will do that.

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4 Comments

Filed under Banks, Foreclosure, Mortgages

4 responses to “MORTGAGE SERVICING SETTLEMENT: MYTH VS. FACT

  1. Pingback: Assembly Adds Bank Mortgage Settlement Into California Law | Resource Blog

  2. Pingback: Restrictions On Foreclosure Practices Begin October 3, 2012 | Resource Blog

  3. Pingback: The $25 Billion AG Foreclosure Settlement Was A Big Dud | Resource Blog

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