A recent article by New America Media, reveals that 10 of the nation's largest banks will be sending checks to homeowners who were in foreclosure during the years of 2009 and 2010. This news comes as part of a settlement reached between the banks, the Federal Reserve Board and the Office of the Comptroller of Currency. $3.3 billion of the settlement monies will be sent to homeowners to compensate for errors that may have occurred during their foreclosure. Another $5.2 billion will be set aside to provide consumers with other forms of relief such as loan modifications.
The proposed payouts will vary depending upon the significance of the errors and the specific characteristics of the borrower's loan.
This settlement comes as a previous initiative to provide homeowners with an independent review of their mortgages expires. The program was criticized for its low rate of participation, lack of advertisement in areas hit the hardest by the foreclosure crisis, and alleged bias of reviewers.
Details about the current plan are scheduled to be released to borrowers in March.
Do you think this payoff will provide just compensation for borrowers?
No comments:
Post a Comment