States Negotiate $26 Billion Deal for Homeowners

[mfcorey1]

Despite the billions earmarked in the accord, the aid will help a relatively small portion of the millions of borrowers who are delinquent and facing foreclosure. The success could depend in part on how effectively the program is carried out because earlier efforts by Washington aimed at troubled borrowers helped far fewer than had been expected.

Still, the agreement is the broadest effort yet to help borrowers owing more than their houses are worth, with roughly one million expected to have their mortgage debt reduced by lenders or able to refinance their homes at lower rates. Another 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 will receive checks for about $2,000. The aid is to be distributed over three years.

The final details of the pact were still being negotiated Wednesday night, including how many states would participate and when the formal announcement would be made in Washington. The two biggest holdouts, California and New York, now plan to sign on, according to the officials with knowledge of the matter who did not want to be identified because the negotiations were not completed.

http://www.nytimes.com/2012/02/09/business/states-negotiate-25-billion-deal-for-homeowners.html?_r=1&hp

[Angry Dragon]

1. a sell out

[AtomicKitten]

2. According to Matt Taibbi,

- excerpt

Matt Taibbi: "The narrow focus of the deal covers only a small amount of liability and leaves the banks incredibly exposed to all kinds of criminal investigations."

Matt Taibbi interviewed by Bill Press on Countdown:
http://current.com/shows/countdown/videos/matt-taibbi-ponders-whether-obamas-embrace-of-populist-rhetoric-is-already-impacting-wall-street

[joshcryer]

3. Is that confirmed?

[AtomicKitten]

5. The deal's not confirmed

Last edited Thu Feb 9, 2012, 05:12 AM - Edit history (2)

-- not yet.

Tonight on our local news I heard AG Kamala Harris is close to signing on now that she has been assured the banks will be left wide-open for criminal prosecution. AG Beau Biden is close to signing on but seems to be looking for some more money. Matt Taibbi calls this deal "a small slice of the fraud pie" that leaves banks on the hook for criminal prosecution. The group Pres O created headed up by AG Schneiderman is working on that ... http://www.washingtonpost.com/business/markets/ny-ag-schneiderman-sues-banks-accusing-them-of-deceit-in-use-of-electronic-mortgage-registry/2012/02/03/gIQAfEHEnQ_story.html

On edit ... It is being reported a deal has been reached: http://www.huffingtonpost.com/2012/02/09/foreclosure-settlement-mortgage-national_n_1264445.html * and * http://www.marketwatch.com/story/banks-reach-25-bln-mortgage-settlement-report-2012-02-08

But all AGs have not signed on yet: http://www.latimes.com/business/money/la-mortgage-settlement-20120208,0,1968517.story * and * http://news.yahoo.com/holdout-states-lured-back-mortgage-deal-002546683.html

So ...

[2pooped2pop]

6. we still get screwed.

this looks like the banks are getting protected from being sued by the people who lost their homes but can still be prosecuted, but that won't happen. The investers can still sue. Only the homeowner is left out of suits. For that we get a plan that may help a few people who are still caught up on their loans but still screws the rest of us.

[msongs]

4. states negotiate deal to let banks off the hook for pennies on the dollar nt