Feds Require Mortgage Companies To Pay $8.5B
By McCoy Freeman Group // January 7, 2013
OPINION ON REAL ESTATE
(ABOVE VIDEO: AssociatedPress)
Ten major banks and mortgage companies reached a settlement with federal regulators to pay $8.5 billion to mortgage assistance and payments to distressed borrowers.
This will settle federal complaints that some homeowners were wrongfully foreclosed on who should have been allowed to stay in their homes.
Banks such as Bank of America, Wells Fargo, JPMorgan Chase, Citigroup, MetLife Bank, PNC Financial Services and others will pay an estimated $1,000 – $125,000 to each homeowner that was wrongfully foreclosed to end a review process of foreclosure files that was required under a 2011 enforcement action
Banks such as Bank of America, Wells Fargo, JPMorgan Chase, Citigroup, MetLife Bank, PNC Financial Services and others will pay an estimated $1,000 – $125,000 to each homeowner that was wrongfully foreclosed to end a review process of foreclosure files that was required under a 2011 enforcement action
The review was ordered because banks mishandled homeowner’s paperwork and also skipped the required steps in the foreclosure process.
This was widely referred to as the “robo signing” scandal because thousands of foreclosure documents were allegedly signed and submitted in court without being verified.
The deal “represents a significant change in direction” from the original, 2011 agreements, Comptroller of the Currency Thomas Curry said in a statement.
Curry said the new deal meets the original objectives “by ensuring that consumers are the ones who will benefit, and that they will benefit more quickly and in a more direct manner.”
“It has become clear that carrying the process through to its conclusion would divert money away from the impacted homeowners and also needlessly delay the dispensation of compensation to affected borrowers,” Curry said.
Folks, let’s recap what has happened over the real estate boom and crash. Back then if my dog Lexi applied for a loan, she may have been approved for a $300,000 No Doc Loan. Okay, using my dog as an example is probably an extreme but my point was that almost anyone could get a loan back then.
Banks rush the approval process and it cost them money then. Now the banks rushed thru the foreclosure process and it is costing them money – again.
ABOUT THE AUTHOR
Bobby Freeman, a life-time resident of Brevard County, has been a top Realtor in the area for two decades. In his first year as an agent, Freeman received a Rising Star award from his Brokers. Since then he has achieved numerous sales awards and has recently been presented with the prestigious RE/MAX Hall of Fame Award.
Freeman, Jennifer McCoy and Nikki McCoy Freeman are family partners for RE/MAX Elite’s McCoy-Freeman Group. Together they have more than 30 years of extensive experience in all aspects of the real estate industry and have sold over $150 million. Among McCoy-Freeman Group’s achievement are RE/MAX Hall of Fame, RE/MAX 100% Club, Certified Distressed Property Experts (CDPE), Accredited Buyer’s Representative (ABR) and voted Best Realtor in Brevard County. The group has been featured in many news publications including CNN Money Magazine, CNNMoney.com, WFTV 9 ABC News, Coastal Condo Living, & Hot Retirement Towns Magazine and SpaceCoastDaily.com.
For more information log on to BrevardRealtyConnection.
