Brp305's Blog

Just another WordPress.com weblog

Bank of America, JPMorgan Chase, Wells Fargo, Citibank & Ally Financial: Agree to $25B Mortgage Deal after Deceptive Practices

The nation’s five largest mortgage lenders have agreed to overhaul their industry after deceptive foreclosure practices drove homeowners out of their homes, government officials said Monday.

A draft settlement between the banks and U.S. states has been sent to state officials for review. The Five Major Banks involved include: Bank of America, JP Morgan Chase, Wells Fargo, Citibank and Ally Financial, along with U.S. State Attorneys General could adopt the agreement within weeks, according to two officials briefed on the discussions. They spoke on condition of anonymity because they are not authorized to discuss the agreement publicly.

The settlement would be the biggest in a single industry since the 1998 multistate tobacco deal. And it would end a painful chapter that grew out of a 2008 financial crisis.

Those who lost there homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement, which could be as high as $25 billion. About 750,000 Americans; about half of the households who might be eligible for assistance under the deal, will likely receive checks for about $1800.

However, the agreement could reshape long-standing mortgage lending guidelines and make it easier for those at risk of foreclosure to restructure their loans. Roughly, one million homeowners could see the size of their mortgage reduced.

The settlement would only apply to privately held mortgages issued between 2008 and 2011, not those held by government-controlled Fannie Mae and Freddie Mac. Fannie and Freddie own about half of all U.S. mortgages, roughly about 31 million U.S. home loans. Nearly 8 million Americans have faced foreclosure since the housing bubble burst.

About 1 million homeowners could also get the principal amount of their mortgages written down by an average of $20,000. One in four homeowners with a mortgage – or roughly 11 million people – owe more than their home is worth. These so-called “underwater” borrowers have little chance of refinancing.

Under the deal:
• $17 billion would go toward reducing the principal that struggling homeowners owe on their mortgages.

• $5 billion would be placed in a reserve account for various state and federal programs; a portion of that money would cover the $1,800 checks sent to those homeowners affected by the deceptive practices.

• $3 billion would go to help homeowners refinance at 5.25 percent.

Comment: “And at the end of the day millions of homeowners and their families are displaced, never to be made whole again and not one person involved [in what could be termed “The Biggest Rape of the People in American History”] will go to jail. Only in America!”

Advertisements

January 25, 2012 Posted by | Business News | , , , , , , , , , | Leave a comment

Valerie Jenkins gets probation for her role in husband’s suicide

Valerie Jenkins plead guilty on Monday to manslaughter with a deadly weapon for the May 2009 death of her husband, Robert Jenkins, closing a case that had piqued the interest of legal scholars across Florida. Jenkins attorney, James Best, said it was her decision to plead guilty, “It was what she wanted to do.”

Married for seven years, the Jenkins’ quarreled frequently and on the night of May 4, 2009; the couple argued again because Robert Jenkins had not taken his blood pressure medication and had been drinking beer heavily that fatal night, and through a drunken stupor said that “he wanted to die.”

Tired and exasperated and fed up with her husbands ramblings, Jenkins asked her drunken husband if he wanted his gun. Drunk with ill-rational thoughts, he said “Yes!” Valerie Jenkins proceeded to get her husbands .22-caliber pistol which was located in a dresser drawer and tossed a drunken man the zippered pouch that contained a loaded pistol.

Valerie Jenkins then walked towards the kitchen, when she heard a pop. As she turned around, frozen in a state of shock, she saw her husband slumped over the sofa with a gun shot wound.

Miami-Dade prosecutors Kathleen Hoague and Lody Jean said Valerie Jenkins acted with “reckless disregard for human life.” In preparing its manslaughter case, prosecutors relied on the successful case against Jeramy Ricky Rushing, who in February 1986 gave a loaded and cocked gun to a despondent woman outside a Dania Beach bar.

A Broward County judge dismissed a manslaughter charge against Rushing, but an appeals court later reinstated the case and a jury convicted him. Like Jenkins, Rushing did not receive any jail time but was sentenced to two years of house arrest plus 300 hours of community service.

On Monday, Best asked Miami-Dade Circuit Judge Leon Firtel to dismiss the case against his client, saying Robert Jenkins’ “independent intervening act” of suicide could not have been foreseen by his wife. Judge Firtel acknowledged the “mental gymnastics” that the legal case posed for him and legal observers, but declined to throw out the case, clearing the way for a jury trial.

Valerie Jenkins ultimately would have faced a maximum of 30 years in prison, decided against trial. It’s a difficult case for everybody and it should be resolved,” said Judge Firtel.

For handing her drunk /suicidal husband a loaded pistol, which he used to kill himself, Valerie Jenkins will serve five years of probation. “The important thing to the family of the victim is the admission of guilt and that she is convicted. The issue of jail time was not the main concern,” said Kathleen Hoague, Miami-Dade Chief Assistant State Attorney.

photo credit: jonathanturley.com

January 25, 2012 Posted by | Court News | , , , , , , , , | 1 Comment