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Banks involved in Foreclosure Abuses reached $25 Billion Deal with U.S. States

Bank of America will pay approximately $8.6 Billion; Reimbursement by the 5 Banks to Federal & State Governments totals $5.5 Billion; Wells Fargo will pay approximately $4.3 Billion; JP Morgan Chase will pay approximately $4.2 Billion; Citigroup will pay approximately $1.8 Billion and Ally Financial will pay $22 Million.

It sounds like a lot of money until you factor in how many homes were illegally foreclosed upon. These homeowners will never be made whole and the yet the banks still have three years to comply.

This is the biggest settlement [consisting of 49 states, excluding Oklahoma, who has a separate deal with the banks] involving a single industry since the 1998 multistate tobacco deal.

Part of the settlement stipulates that the lenders send approximately 750,000 Americans a check in the amount of $2,000.00. Which in reality consist of a slap on the hand, considering they have three years to fulfill the terms of the deal?

What’s wrong with this picture? Once again no one accepts responsibility but rather a fine is imposed on the institution with a sweet deal leaning in favor of the lenders, even though it was found that many of the homes were foreclosed on without verifying documents. Unfortunately, some of the blame belongs to the courts for not having their court clerks verify that all the necessary documents were in the file before placing the case on the calendar.

Under the deal, the states said they won’t pursue civil charges related to these types of abuses. However, homeowners can still sue lenders in civil court on their own, and federal and state authorities can pursue criminal charges.

For further details please click here!


February 9, 2012 - Posted by | Business News | , , , , , , ,

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