Tuesday, January 15

Banks $8 total annual sales reach settlement on mortgage abuse

John W. Schoen, NBC News

Ten of the largest U.S. mortgage lenders have $8.5 billion to a settlement with federal authorities, the a case of review programme to identify the victims of abuse widespread foreclosure end agreed.

With the latest multi billion-dollar settlement, giant of the country mortgage lenders that mortgage confusion behind hope. But critics of the deal worry that it may leave millions of foreclosed homeowners that little or no relief from lenders, that confusion created the mortgage in the first place.

"I have serious concerns that this settlement banks to rock, what it debt and go past abuses under the rug without determining that the borrower have suffered the full damage may allow", Rep said Elijah E. Cummings, d-MD., Member of the House Committee on oversight and democratic Government and a voice, which critically about the Government controller handling the mortgage crisis.

OCC officials said on Monday that consumers are better served under the settlement, because claims are now faster, and that diversion of funds that will be used was can the cost of the review process to pay claims. By reviews from case to case, already more than 1.5 billion $ has spent, officials said.

"We started independent review of foreclosure, said OCC to fix what was broken, who was harmed as they compensate for the injuries to recognize," said Thomas Curry Comptroller in a statement the currency. "While today's announcement represents a significant change in direction, it meets the original objectives by ensuring that are the consumers, who will benefit and they benefit from a faster and more direct way."

In accordance with the agreement of banking giant six other mortgage lenders, JPMorgan Chase, Bank of America, Citigroup and Wells Fargo $5.2 billion in aid, mortgage and $3.3 billion direct payments wrongly borrowers, will offer according to the Office of the Comptroller of the currency and the Federal Reserve.

The other seven lenders include Aurora, MetLife Bank, PNC, SunTrust and sovereign and US Bank.

Banks were among the 12 lenders and two mortgage service companies, cited by regulatory authorities in 2011 for the foreclosure who claims widespread abuse after that she improperly foreclosure had confiscated houses in the wave of registrations, which flooded after 2007 housing reduce the industry.

OCC officials said that 10 lenders have approved the settlement in principle, but the terms are not disclosed until they are completed. They said that continued discussions with other institutions ordered to review foreclosures, bank containing EverBank, OneWest, HSBC and sovereign.

When industry-wide foreclosure abuse almost two years ago surfaced, required to contact federal banking regulators, banks and service companies, consulting firms borrowers and check their cases to rent. Some 4.4 million letters were sent to potential applicants, applied 31 December within the period have reviewed their cases of which around half a million.

Consumer groups are working, to head off foreclosures, the review programme from the outset, have partly criticized as the consulting firms, carrying out the reviews and quotes from financial institutions for unlawful practices. Since then critics have called slow progress in the review of cases and compensate the victims of wrongful foreclosure.

Federal authorities said in June that the lender, the implementation of reviews would have to more than $125,000 debtors to pay their Hauser wrongly seized. But so far no borrowers have been paid, according to regulators.

Critics of Monday's settlement argued that there will be many wrong homeowners with no other recourse left, that significantly the amount lenders reduced ultimately have to pay it.

"For many people the end of the line", said Diane Thompson, a lawyer with the National Consumer Law Center. "This is a much lower number for banks in comparison compared to what they at risk for were."

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