$8.5 Billion Agreement with Mortgage Servicers Fails to Bring Economic Justice


$8.5 Billion Agreement with Mortgage Servicers Fails to Bring Economic Justice

The recent joint announcement by two key federal regulators believed a negotiated agreement with 10 mortgage servicing firms would help more than 3.8 million consumers who were wrongfully foreclosed during 2009 and 2010. Brokered by the Federal Reserve and the Office of the Comptroller of the Currency (OCC), mortgage servicing firms agreed to jointly pay foreclosed consumers $3.3 billion, and allot another $5.2 billion for loan modifications and other services.

Yet as news of the settlement spread, a range of opinions emerged. From a prominent Capitol Hill legislator to consumer advocates, varying views spoke about the harm wrought by wrongful foreclosures and how far $3.3 billion split amount nearly 4 million consumers would really go.

Rep. Elijah Cummings (D-Md.), ranking member of the House Committee on Oversight and Government Reform, said: “I do not know what the rush was to make this settlement without answering key questions, and although I look forward to obtaining information about how this deal may assist homeowners, I have serious concerns that this settlement may allow banks to skirt what they owe and sweep past abuses under the rug without determining the full harm borrowers have suffered.”

Rest here…



4 Responses to “$8.5 Billion Agreement with Mortgage Servicers Fails to Bring Economic Justice”
  1. Kim Wilson says:

    Please do not allow the OCC to pick an arbitrary amount out of a hat based on nothing other than minimizing bank exposure. I keep reading about how one ethnic group deserves more or military deserves more of the settlement. This is not about either form of discrimination awards, by race or occupation. This is about determining who is owed what and making the banks pay it. The following statistic has to be considered when looking at a lack of balance in foreclosure rates interest and points between ethnic groups in Florida based on risk statistics. 1 out of every 37 blacks in Florida are living in prison or jail when whites make up almost 80% of Florida’s population.In other words, blacks are 15% of the population and make up 48% of all Florida inmates according to the Orlando Sentinel. http://articles.orlandosentinel.com/2001-07-25/news/0107250314_1_prison-or-jail-prison-population-blacks-in-Florida . I’m not sure if all the judges are getting it wrong or if the problem is that public schools offer basically one option for a quality life. Public education has a plan for students that are college bound and a high GPA or you get dumped out with no life plan. The people that are not college bound with a low GPA by their junior year need to start learning a trade, at the high school or a voucher for education at a junior college or trade school for a 2 year trade program. At graduation they have a skill certificate. In addition a Life skills class has to be taught in school the sophomore year that includes (anger management, conflict resolution, decision making, budgets, morals, values ethics goal setting, interest tests, manners, effects of each drug, parenting, over coming obstacles). The black community deserves better life training and options is the problem! Everybody that had direct or indirect damages of $125,000 or more from the banks deserve at least $125,000 end of story. The settlement amount with the banks needs to be a lot higher than 3 billion from the abuse they inflicted, if fairness is even considered. This settlement needs to be a true turning point in healing not add to the pain for the victims where they feel abused again.

  2. Concern level?If everyone is so concerned as they profess to be why has nothing been done.Mouthing pretty platitudes to keep the consumer happy has seen better days.Do they really think we will accept this?

  3. Henri says:

    So are the ways of every one that is greedy of gain; which taketh away the life of the owners thereof. Proverbs 1:19 How do we obtain the funds from the Lawsuit?

  4. tim says:

    We will never see the money……there are too many things more important than people and their families.

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