Monday, December 31, 2012

Housing Deal Fails to Prosecute Criminal Misdeeds




Settlement Expected on Past Abuses in Home Loans By Jessica Silver-Greenberg, The New York Times 31 December 12 Published: December 30, 2012 http://www.nytimes.com/2012/12/31/business/settlement-expected-with-banks-over-home-loans.html?nl=todaysheadlines&emc=edit_th_20121231&_r=0


[Excerpted] Banking regulators are close to a $10 billion settlement with 14 banks that would end the government's efforts to hold lenders responsible for foreclosure abuses like faulty paperwork and excessive fees that may have led to evictions, according to people with knowledge of the discussions.

....Federal agencies like the Securities and Exchange Commission and the Justice Department are continuing to pursue the banks for their packaging and sale of troubled mortgage securities that imploded during the financial crisis. 

Housing advocates were largely unaware of the latest rounds of secret talks, which have been occurring for roughly a month. But some have criticized the government for not dealing more harshly with bankers in light of their lax standards for making loans and packaging them as investments, as well as their problems with modifying troubled loans and processing foreclosures....

When regulators approached the banks to broach a settlement this month, they met first with Wells Fargo and proposed that the banks pay $15 billion, according to the people familiar with the discussions. After negotiations, though, the regulators agreed to $10 billion.

All of the 14 banks are expected to sign on. 

Majia here: The banks are willing to sign because, once again, they are absolved of any criminal misdeeds.

PREVIOUS POSTS

Feb 16, 2012
Foreclosure Fraud Endemic: Symptomatic of Rampant Corruption in Every Aspect of Governance. Audit Uncovers Extensive Flaws in Foreclosures by Gretchen Morgenson Feb 15, 2012 New York Times ...
Oct 09, 2010
Michael Hudson on Boiler Rooms and Foreclosure Mills. http://www.publicintegrity.org/blog/entry/2507/ I just discovered there are 2 Michael Hudsons. How wonderful! It was like when my son discovered that he had 2 blankies ...
Apr 07, 2010
http://www.calculatedriskblog.com/2010/04/report-bofa-to-increase-foreclosures.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29. Posted by Majia's ...
Feb 13, 2012
Foreclosure Deal to Spur US Home Seizures By Prashant Gopal and John Gittelsohn, Bloomberg News 11 February 12 http://www.readersupportednews.org/news-section2/320-80/9916-foreclosure-deal-to-spur-us-home- ...
Sep 17, 2012
The article is titled "Boost for Foreclosure Market: Real-Estate Firm Gets Citigroup Loan To Buy Properties to Turn into Rentals" on page C3 9/17/2012 WSJ: [Excerpted] "Waypoint Real Estate Group LLC, a major investor in ...
Nov 19, 2009
"The MBA reports a record 14.4 percent of mortgage loans were either one payment delinquent or in the foreclosure process in Q3 2009. This is an increase from 13.2% in Q2 2009." It is hard to see how the recession has ...



No comments:

Post a Comment

Note: Only a member of this blog may post a comment.