8 Findings From the Washington Post’s Article on Mortgage Settlements
One of the supposed ways of helping people out of underwater mortgages was the federal and state governments’ myriad settlements with the big banks. Large banks engaged in risky lending practices, occasionally racist lending practices, and even foreclosure fraud in the “robo-signing” scandal. The settlements with the government, it was thought, would remedy the problems, lift homeowners out of underwater mortgages, and compensate wrongly evicted homeowners. The actual result, according to the Washington Post, is that much of the settlement fund has yet to be distributed. Here are the facts:
· Out of the $5.7 billion mortgage restitution settlement, only $2.6 billion has been paid out. The first of the 30 settlements was entered into in 2008.
· In 2011, Wells Fargo promised to compensate nearly 10,000 borrowers for steering them into subprime loans even though they qualified for better rates, but it has yet to pay out a single claim.
· No one knows how many people Bank of America will pay out $1,000 to $5,000 settlements for disability discrimination. BoA had been denying loan applications to people receiving disability checks who did not provide letters from physicians explaining the severity of their disabilities.
· BoA and JPMorgan Chase agreed with the Office of the Comptroller of the Currency to settle some wrongful foreclosures but only after determining who was eligible on a case-by-case basis. No claims have been paid, but the eight consultants the banks hired were paid $2 billion total.
· Under a new agreement, three million homeowners received payments from the banks, some exceeding $100,000 but others not more than $300. Some of the checks bounced.
· None of the $1.5 billion in direct payments homeowners under the $25 billion settlement between the banks and homeowners have been made.
· Banks claim that three things in particular are stymieing would-be recipients: Some are still unidentified; some have not responded to notices; and the value of some eligible people’s payouts has yet to be determined.
· Many homeowners have been waiting years for relief, and naturally some payouts won’t be sufficient for reimbursing homeowners.
As you can imagine, impatience with what were supposed to be honest settlements is mounting. What will come of it remains to be seen. However, if you are having trouble paying your mortgage, or have other financial difficulties, then now is the time to discuss your situation with an experienced Las Vegas bankruptcy lawyer.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-803-9251 to set up your free consultation.