The Real Deal New York

Posts Tagged ‘Bank Foreclosure Settlements’

  • schneiderman

    Eric Schneiderman

    A court-appointed monitor said CitiGroup, Bank of America and other big mortgage servicers in the U.S. have not improved how they treat customers approaching foreclosure, Bloomberg News reported.

    The banks’ shortcomings pertain to how they handle requests for loan modifications and collect customer records, the monitor, Joseph Smith Jr., said in a report released today. He is empowered to take the banks back to court for additional sanctions if they continually fail in the same area after an improvement plan is implemented, Bloomberg News said. [more]

  • Discoveries of misconduct among the nation’s largest mortgage lenders, prior to and during the foreclosure crisis, are continuing to add up, with the revelation that the nation’s biggest banks wrongfully foreclosed on more than 700 members of the U.S. military, the New York Times reported. [more]

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  • Despite the nascent recovery in the U.S. housing market, thousands of homes still sit vacant in highly distressed markets. But according to CNBC, despite their appearance, not all of these homes are foreclosures. Many are still owned by borrowers — whether they know it or not. Early last year, the nation’s five largest mortgage servicers signed a settlement over “robo-signing” foreclosure abuses. The deal resulted in thousands of properties being released from their liens, with many more to come. … [more]

  • The federal government’s $8.5 billion settlement with 10 large banks over foreclosure abuses following the collapse of the housing market in 2008 has been portrayed by many as swift justice for aggrieved homeowners. But some regulators and consultants see the deal as a distraction from a much-needed comprehensive review of banks’ foreclosure practices, the New York Times reported. Regulators, led by the Office of the Comptroller of the Currency, abandoned their efforts to review some four million loans, after examining only a fraction of the foreclosures, according to former and current regulators and consultants angered over the agencies failure. … [more]

  • The nation’s largest bank, JPMorgan Chase, has agreed to pay borrowers some $2 billion in mortgage relief and direct cash payments in order to settle foreclosure abuse claims with regulators, the Wall Street Journal reported. The settlement calls for some $753 million in cash payments and $1.2 billion for “foreclosure prevention actions.” The bank has said that it will book a $700 million pre-tax charge in the fourth quarter of 2012 to account for the cost of the settlement, which it will report on January 16. JPMorgan was one of 10 banks slapped with fines Monday, following a regulatory probe into abusive foreclosure practices in the aftermath of the financial and housing crisis. … [more]

  • BofA to pay Fannie Mae more than $10B

    January 07, 2013 09:00AM

    Banks were faced with an unprecedented number of lawsuits in 2012, and 2013 may prove to be another litigation-heavy year for banks. According to the New York Times, Bank of America agreed today to pay more than $10 billion to Fannie Mae to settle a dispute over mortgages that tanked during the housing crash. [more]

  • New York state Attorney General Eric Schneiderman

    The $26 billion mortgage settlement, reached in February between numerous state attorneys general and the country’s five largest mortgage servicers, has already sent about $625 million to residents of New York state, a report from New York State Attorney General Eric Schneiderman’s office shows.

    Thus far under the settlement, 7,223 homeowners have received assistance, the statement says, with each borrower receiving an average of $86,600, which includes principal write-downs and “other relief” — referring to legal assistance and counseling on foreclosure prevention.  [more]

  • alternatetext
    The first progress report on the impact of the $25 billion mortgage settlement struck by the nation’s five biggest lenders was released today, by Joseph Smith, who is charged with overseeing the settlement. He reported that banks had provided some $10.56 billion worth of forgiveness to 137,846 borrowers between the time the settlement went into effect March 1 and the end of June (see video after the jump). … [more]

  • Shaun Donovan, HUD secretary

    The U.S. government’s settlement against five big banks was supposed to benefit distressed homeowners, but many states cannot resist diverting the funds to make-up for budget shortfalls, the New York Times reported. When the government reached the estimated $25 billion settlement with banks over mortgage and foreclosure abuses, $2.5 billion was earmarked for states to prevent foreclosures, investigate fraud and alleviate general housing market woes. Now, 15 states have announced that they will be budgeting the money for items other than housing — although 27 states have agreed to use their entire distribution as intended. [more]

  • New York AG Eric Schneiderman

    The mortgage settlement will provide $15 million for foreclosure prevention and other related services, according to a statement from the New York attorney general’s office today.

    The allocation will provide up to $9 million for the state’s foreclosure prevention services program, which was set to expire April 1, and up to $6 million for community-based housing organizations, the statement said. [more]

  • Intended to simultaneously punish banks for their foreclosure practice and help American homeowners in distress, the $25 billion federal foreclosure settlement contains significant elements that reward banks for standard practices and do nothing to alleviate troubled homeowners, according to the New York Times.

    The settlement stipulates that banks give at least $17 billion to help borrowers who have “the intent and ability” to stay in their homes. [more]

  • From the March issue:

  • On the heels of the release of additional details on mortgage abuses from a report by the U.S. Department of Housing and Urban Development, borrowers are expressing full-blown rage regarding the details of the settlement, finalized yesterday, CNN reported.

    The one million borrowers who could receive payments from the settlement are barely a fraction of borrowers who are in default, a number of people told CNN, and the $1,500 to $2,000 pay-outs just aren’t enough. Not to speak of those whose homes have already been lost to foreclosure or whose loans are not serviced by the five largest servicers, which are the only lenders affected by the settlement. [more]

  • David Montoya, inspector general at HUD

    A new report from the inspector general of the U.S. Department of Housing and Urban Development shows that the management at large banks, not low-level employees, were responsible for the forging of foreclosure documents that sparked a nationwide investigation, culminating in the settlement filed yesterday. The report shows bank managers ignoring “widespread errors in the foreclosure process,” the New York Times reported. [more]

  • Joseph Smith, monitor for mortgage settlement

    The $25 billion foreclosure settlement was formally filed in U.S. District Court in Washington D.C. today, the Wall Street Journal reported.

    The settlement, between the government and five major mortgage companies — Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — empowers Joseph Smith, formerly a financial regulator in North Carolina, to monitor banks’ compliance with the 42-page set of standards it creates. Smith will also have the power to levy fines against banks that do not comply with the new standards, the Journal said. [more]

  • Beware: mortgage relief nightmare ahead

    February 24, 2012 10:30AM

    Given the huge public and private resources now being devoted to helping financially distressed homeowners — including the recently announced $25 billion national mortgage settlement with five major banks — you might assume that a key federal tax law benefit underpinning these efforts would be a shoo-in for renewal.

    But it’s not. The Mortgage Forgiveness Debt Relief Act is set to expire in 10 months, and there are early indications on Capitol Hill that it might not make the cut. The law, first enacted in 2007, allows homeowners who have received principal reductions on their mortgages as the result of loan modifications, short sales or foreclosures to avoid income taxation on the amounts forgiven. [more]

  • Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project

    Some American housing advocates doubt that new standards established by government officials to protect homeowners against wrongful foreclosure will do enough to help borrowers, the New York Times reported.

    One of the advocates’ main issues is the problems borrowers face in establishing a relationship with an individual representative at the bank, which they say may not improve despite the inclusion of the issue in the $26 million settlement made with banks by state attorneys general earlier this month. Often borrowers are passed off from person to person and are regularly asked for the same documents again and again, making the process of modifying a loan much more difficult than it needs to be. [more]

  • The foreclosure settlement reached yesterday between 49 state attorneys general and the five largest mortgage servicers could result in a wave of foreclosures that would temporarily depress the American housing market even further, Bloomberg News reported.

    Banks had waited until an agreement was pounded out to proceed with many foreclosures, Bloomberg said, and now that the agreement is finalized they will likely push forward, foreclosing on the backlog of underwater properties. The number of foreclosures initiated in the U.S. fell 46 percent between October and December of 2011, according to data from RealtyTrac, a real estate analytics firm. The investigation into foreclosure abuses began in October of 2011. [more]

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  • A look at the massive mortgage settlement

    February 09, 2012 03:00PM

    From left: President Barack Obama and Attorney General Eric Schneiderman

    The $26 billion settlement reached today between numerous state attorneys general and the country’s five largest mortgage servicers will afford New York State a $136 million settlement, according to a statement from New York Attorney General Eric Schneiderman’s office today. New York’s settlement is the largest per underwater borrower of any state in the nation, and the fourth highest dollar amount of any settlement nationwide, the statement said. [more]

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  • Jersey City to get a High Line?

    February 07, 2012 11:30AM

    A rendering of the proposed High Line in New Jersey

    A legal settlement that would hand control of an elevated railway known as the Sixth Street Embankment in New Jersey from a Manhattan developer to Jersey City authorities could allow for the construction of the state’s own High Line Park, the Wall Street Journal reported.

    While New Jersey officials have long pushed to have the mile-long structure transformed into a landscaped park, the patch of railway has been caught up in a lengthy legal battle spawning from the sale of the prospective park to Manhattan investor Steve Hyman, the Journal said, who wished to build housing at the site. Hyman purchased the embankment from Consolidated Rail for $3 million in 2003; Jersey City then sued Consolidated for selling the land and Hyman sued the city for throwing a wrench in his plans. [more]