New Reports Conclude That The Banks Continue To Break The Terms Of The Settlement
Remember several months ago when people made a big deal about the $25 billion AG Bank Settlement for homeowners?
We’re talking about the National Mortgage Settlement, the $25 billion deal agreed upon a year ago between 49 state attorneys general, federal agencies like the Justice Department and the Department of Housing and Urban Development, and the five largest mortgage servicers: Bank of America, JPMorgan Chase, Wells Fargo, Citi and GMAC/Ally Bank.
Many homeowners and the general public had the impression that foreclosed and distressed homeowners would reap the benefits of the settlement. Homeowners would receive checks. The banks would chop away large amounts of principle. Banks would stop robo-signing. And money would grow on trees. As it turns out it may be more likely that money will grow on trees rather than the other items occurring.
What Happened To The Settlement Money?
It takes talent to make $25 billion seemingly disappear away from the homeowners who need it but that appears to be what has happened. One non profit counselor in San Francisco mentioned how the banks apply their principle reduction for the second lien which counts toward their settlement requirements however it does little to help the homeowner. It essence the banks are cherry picking in order to full their obligations.
According to new evidence disclosed by the Center for Investigative Reporting and NBC Bay Area and another recent article the banks continue to break the terms of the settlement without being punished. The story highlights brave county recoding clerks who have examined mortgage documents in their offices and found massive fraud. The story also mention one case of a mechanical engineer who made a last-ditch effort to save his home, as he delivered a cashier’s check for $27,777.85 to Bank of America, which promptly lost the payment, and foreclosed anyway.
When the AGs made this settlement, they along wit numerous politicians stood up and said how this settlement would stop the abusive practices that have taken place against homeowners. Unfortunately, that doesn’t seem to be the case.