March 2012 Bulletin Board

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  • 8/2/2019 March 2012 Bulletin Board

    1/120March 2012


    Big banks cough up $26 billion Compiled by Russell SteinbergBig bank payoutThe U.S. government

    andve major banks Bank of America, JPM-organ Chase, Wells Far-go, Citigroup andAllyFinancial last monthagreed to a $26 billionmortgage settlementfor wrongful mortgageservicing practices. The

    money willbe paid outto about1.75 millionAmericans.

    New Yorks cutNYS will receive roughly $136

    million the settlements larg-est per-borrower cut of the 49states that signed on. The fed-

    eral govern-ment estimatesthat more than46,000 bor-

    rowers in NewYork willbenet fromthe deal, with

    around21,000 getting a re-duction in the debt owed on

    their mortgages.

    Individual aidVictims of wrongful foreclosure will

    receive checks for $1,500 to $2,000.Funds will also be allocated for loanmodifcations and legalassistance for under-water borrowers. Pres-ident Barack Obamasaid in a speech thatthe deal will begin toturn the page onan era of reck-lessness.

    Imperfect planNew York AG Eric Schneiderman was critical of the deal,saying it let banks off too easy. The settlement will onlyimpact loans serviced by the na-tions biggest lenders, or about 55percent of all mortgage holders,though the government hopes to eventually strike a dealwith nine additional banks. (Wall Street Journal)

    Good timingNew York State currently faces arecord100,000 impending fore-closure cases, with tens of thou-sands still potentially to come.NYC saw 996 rst-time foreclo-sures in 2011, but thousands morewere notied last year that theyrein danger of losing their homes.(NYT, Daily News)

    Past dueNationally, the number of latemortgage payments increasedin 2011s fourth quarter, thesecond straight quarter of in-creases after nearly two yearsof declines. Indeed, 6.01 per-cent of mortgage holders wereat least 60 days late on theirpayments, compared to 5.88percent in the third quarter.

    (Associat-ed Press)

    Lawsuit pendingSchneiderman led a sepa-rate suit last month againstthree of the banks includedin the settlement, allegingfraudulent use of the elec-tronic mortgage databaseMERS, which he claims made iteasier to improperly fore-close on homes. He saidMERS led more than13,000 foreclosures inthe Empire State.

    Bloombergs new billLast month, Mayor Michael

    Bloomberg signed a billrequiring banks to noti-fy the citys Departmentof Housing Preserva-tion and Development atleast 15 days before be-ginning foreclosure pro-

    ceedings on a home.Banks will face apenalty of up to$1,000 for eachweek they fail tocomply. (WNYC)

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