Pam Bondi Press Release | Florida Enters $25 Billion Joint State-Federal Mortgage Servicing Settlement

Florida Enters $25 Billion Joint State-Federal Mortgage Servicing Settlement

TALLAHASSEE, Fla.-Attorney General Pam Bondi today formally entered a landmark $25 billion joint federal-state agreement with the nation’s five largest mortgage servicers over foreclosure abuses and unacceptable nationwide mortgage servicing practices. The proposed agreement provides an estimated $8.4 billion in relief to Florida homeowners and addresses future mortgage loan servicing practices. The settlement generally releases civil claims related to robo-signing, other foreclosure-related abuses, and loan origination misconduct, but it provides no release of criminal claims or of claims related to mortgage securitization.

“This settlement will provide substantial relief to struggling Florida homeowners, and ensures that our state gets its fair share of the relief being provided nationally,” stated Attorney General Pam Bondi. “This agreement holds banks accountable and puts in place new protections for homeowners in the form of strict mortgage servicing standards.”

Florida’s share of the total monetary benefits under the settlement is approximately $8.4 billion.

· Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction, and other direct relief.
· Approximately $170 million will be available for cash payments to Florida borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and suffered servicing abuse.
· The value of refinanced loans to Florida’s underwater borrowers would be an estimated $ 309 million.
· The state will receive a direct payment of $ 350 million.
In addition to the terms of the national settlement agreement, Attorney General Bondi separately negotiated an agreement with the nation’s three largest mortgage servicers to ensure that a guaranteed portion of the overall settlement funds goes to Florida borrowers.

The unprecedented joint state-federal settlement is the result of a civil law enforcement investigation and initiative that includes state attorneys general and state banking regulators across the country, and nearly a dozen federal agencies. The settlement holds banks accountable for past mortgage servicing and foreclosure fraud and abuses and provides relief to homeowners. With the backing of a federal court order and the oversight of an independent monitor, the settlement reforms the mortgage servicing industry and protects against future fraud and abuse.

Under the agreement, the five servicers have agreed to $25 billion in monetary relief under a joint state-national settlement structure.

Nationally:

· Servicers commit a minimum of $17 billion directly to borrowers through a series of national homeowner relief effort options, including principal reduction. Given how the settlement is structured, servicers will actually provide up to an estimated $32 billion in direct homeowner relief.
· Servicers commit $3 billion to a mortgage refinancing program for borrowers who are current, but owe more than their home is currently worth.
· Servicers pay $5 billion to the states and federal government $4.25 billion to the states and $750 million to the federal government. The state payments include funding for payments to borrowers for mortgage servicing abuse.
· Homeowners receive comprehensive new protections from new mortgage loan servicing and foreclosure standards.
· An independent monitor will ensure mortgage servicer compliance.
· Government can pursue civil claims outside of the agreement, any criminal case; borrowers and investors can pursue individual, institutional or class action cases.
The settlement does not grant any immunity from criminal offenses and will not affect criminal prosecutions. The agreement does not prevent homeowners or investors from pursuing individual, institutional or class action civil cases against the five servicers. The pact also enables state attorneys general and federal agencies to investigate and pursue other aspects of the mortgage crisis, including securities cases.

The final agreement, through a consent judgment, will be filed in U.S. District Court in Washington, D.C., and will have the authority of a court order.

Because of the complexity of the mortgage market and this agreement, which will span a three year period, in some cases participating mortgage servicers will contact borrowers directly regarding loan modification options. However, borrowers should contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement or other available programs.

More information will be made available as the settlement programs are implemented.

~

4closureFraud.org

Comments
8 Responses to “Pam Bondi Press Release | Florida Enters $25 Billion Joint State-Federal Mortgage Servicing Settlement”
  1. Beth A. says:

    PUT A FORK IN HER……SHE’S DONE.

    I have no personal knowledge of any FL citizen who will vote for her if she is stupid enough to run again.

  2. Joe Gaffney says:

    Who are the deadbeats?

    (1) Those that were told, by their “lending” institution, to stop paying for 90 days if they wanted a reduced interest rate, even though they had never been late before; and these people “deadbeats”?

    (2) Those who had decent jobs, and were able to timely pay on their mortgages, who, because the government rapidly increased the prime rate, which started the economic decline,, even thogh prior to this they never been late before; are they the “deadbeats”?

    (3) Those whose homes went from 60% to 80% of value down to 40% of value, who could not, and cannot, refinance under any circumstances, even though, for years they had never been late; are they the “deadbeats”?

    (4) Those who just weren’t up to par in their knowledge of “mortgages” and what effect a universal downtrend might cause, but, were sold by the banks and lenders into loans that were doomed to failure sooner or later, although, for as long as they could, they never missed a payment; are they the “deadbeats”?

    (5) Those who suffered tragedy resulting in a loss, or reduction, of income, through no fault of their own, prior to which they were never late; are they the “deadbeats?”

    Which “deadbeat” category do you fit in?

    Isn’t it funny that our politicians never seem to make into any of these categories? Isn’t it strange that our politicians, no matter what, never feel the pinch of a recession? Enve if the revenues begin to drop off, isn’t it funny that they can enact increases in taxes to make sure that nothing happens to them?

    This is sickening. Pam Bondi, in Florida, should have called for a panel to review a random number of failures-to-pay to see for herself what were the circumstances, instead of disparaging a large percentage of her own citizenry then throwing them under the bus.

    • Joe Gaffney says:

      I meant to write: 140% of value.

      • lvent says:

        They never lent us any money Joe Gaffney…that is their dirty little secret…that they don’t want anybody to know..that is how they get away with robbing and enslaving the masses…Stop believing their lies…that they are so sick in their own heads they believe their own lies……stop paying, conforming and complying…and smack them upside their heads with the truth…..they never lent you any money…and you own your home or business…and the truth is WE THE PEOPLE OWN THIS PLACE..it is we who funded and payed for everything…including all of their stolen …ill gotten gains…and know that you are free and always were because our founding fathers knew of this evil plan…and put laws in place to protect our freedom and liberty…..and God warned us all of this evil plan by his adversary to deceive mankind into his trap……the truth will set you free…you were always free..when you know the truth…that you are free…that is priceless…something money cant buy…and you are free to walk out of their false debt enslavement at any time and in whatever way you see fit..

  3. Katheryn says:

    Yes..I know my post above is immature at best, but the deep deep hurt and betrayal, although I’m not surprised, has really torn at my very soul this morning. I can’t even read through all the posts detailing this betrayal as the tears flow and my vision blurs. This day should be marked on each and every calendar as the next worst day to 911. 911 was perpertrated on innocent people by terrorists…now other innocent people have just been shown that there still exist laws that we each must follow; but those with all of our money, retirements and homes do not have those laws applied to them. I keep trying to envision myself going out and committing forgery, theft, fraud to name a few crimes, and turning the legal system upside down with my maneuverings and years of time wasting in which the law could find me guilty. Yet, this is what we have witnessed with our own eyes and ears for years and, at last, the final knife in the back, they didn’t really break the laws and look we are making them pay. REALLY. Bull S&%t. They have spoken: there are one set of laws for us and another totally different set for them the 1% (which is the whole damn GSM). And, YES, it is very much CLASS WARFARE. You are in the privileged 1% GSM or you are not and support them with your hard work and tax dollars. BullS&%t.

    • lvent says:

      Know that you are free, Katheryn..that’s all you really need to know…that you are free..and you can prove it…they just hid if very stealthily from all of us.

  4. Katheryn says:

    Yes, Blondie Bondie you are such a fine and upstanding citizen. We all know you don’t reward deadbeats. Go shopping now blondie and figure out how you’ll spend the nice bonuses or raise I’m sure you have coming. You might also want to start picking out the most desireable land areas for your tent cities as you wouldn’t want them too close to your nice office building now would you. If the breeze is blowing in the wrong direction, you might get a waft of stink that you wouldn’t care for. P.S. Blondie – I’m not quite sure that shade of blond you’re sporting now isn’t a bit gold. Your really should make an appointment with a good color consultant to find a better tone of gold. After all, your hard work is now completed so you should have plenty of spare time, or heck, even on the clock time, to pretty yourself up a bit more.

Leave a Reply